A Price Floor of $23 Placed on the Market in the Graph

question 67

Multiple Choice

A price floor of $23 placed on the market in the graph shown:

• A) is binding, and causes a shortage.
• B) is non-binding, and does not affect the market.
• C) is binding, and causes a surplus.
• D) is non-binding, and does not prevent the market from reaching equilibrium.