If a Price Floor Is Not Binding, Then

question 144

Multiple Choice

If a price floor is not binding, then

• A)​the equilibrium price is above the price floor.
• B)​the equilibrium price is below the price floor.
• C)​there will be a surplus in the market.
• D)​Both (a) and (c) are correct.

---

Definitions:

Interest Rate

The cost of borrowing money, usually expressed as a percentage of the amount borrowed.

Net Earnings

The amount of income left after deducting all expenses, taxes, and costs from gross revenue.

Continuous Future

A futures contract that amalgamates several expiry contracts to create a continuous, extended trading period for investors.

Apple Computer

A technology company that designs, manufactures, and markets consumer electronics, software, and services, well-known for products like the iPhone and MacBook.