To Say That a Price Floor Is Binding Is to Say

question 20

Multiple Choice

To say that a price floor is binding is to say that the price floor

• A)results in a shortage.
• B)is set below the equilibrium price.
• C)causes quantity supplied to exceed quantity demanded.
• D)All of the above are correct.

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Definitions:

Numerical Coefficient

The numerical factor in a term.

Like Terms

Terms in an algebraic expression that have the same variables raised to the same power, and therefore can be combined.

Simplify

To make something less complicated or easier to understand, often by reducing it to its basic components.

Collect Like Terms

The process of simplifying mathematical expressions by combining terms with the same variables.