Answered: A binding price floor causes Select…

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Economics

A binding price floor causes Select one: a. excess demand b. equilibrium price to fall. c. a surplus O d. a shortage.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section6.1: Controls On Prices

Problem 1QQ

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Question

A binding price floor causes
Select one:
a. excess demand
b. equilibrium price to fall.
c. a surplus
d. a shortage.

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