A Binding Price Floor Creates a Surplus,which Means

question 146

Multiple Choice

A binding price floor creates a surplus,which means:

• A) there will be downward pressure on prices until quantity demanded equals quantity supplied.
• B) there will be upward pressure on prices until quantity demanded equals quantity supplied.
• C) there will be upward pressure on the quantity demanded until quantity demanded equals quantity supplied.
• D) the quantity demanded will always exceed the quantity supplied.
• E) the quantity demanded will always be smaller than the quantity supplied.

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