If a price floor is not binding, then
a. there will be a surplus in the market.
b. there will be a shortage in the market.
c. there will be no effect on the market price or quantity sold.
d. the market will be less efficient than it would be without the price floor.
c
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The figure above shows the market for milk in Cowland. If a subsidy paid to producers of $1 per gallon of milk is introduced, how many gallons are sold per year?
A) 200 million B) 400 million C) 300 million D) more than 300 million but less than 400 million
Tariff rates on products imported into the United States:
a. were prohibited by the Constitution. b. have dropped substantially over the past 50 years. c. reached an all time high in 1996. d. have steadily increased since 1920. e. have never played a big part in U.S. trade policy.