The result of a binding price floor is:
a. quantity demanded at the price floor exceeds the amount at the equilibrium price, and quantity supplied is less than the amount at the equilibrium price.
b. quantity supplied at the price floor exceeds the amount at the equilibrium price, and quantity demanded is less than the amount at the equilibrium price.
c. quantity demanded and quantity supplied at the price floor are equal at the equilibrium price.
d. quantity demanded at the price floor is less than the amount at the equilibrium price, and quantity supplied is also less than the amount at the equilibrium price.
Ans: b. quantity supplied at the price floor exceeds the amount at the equilibrium price, and quantity demanded is less than the amount at the equilibrium price.
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