To say that a price floor is binding is to say that the price floor
a. results in a shortage
b. is set below the equilibrium price.
c. causes quantity supplied to exceed quantity demanded.
d. All of the above are correct.
c
You might also like to view...
The efficient markets hypothesis predicts that stock prices follow a "random walk." The implication of this hypothesis for investing in stocks is
A) a "churning strategy" of buying and selling often to catch market swings. B) turning over your stock portfolio each month, selecting stocks by throwing darts at the stock page. C) a "buy and hold strategy" of holding stocks to avoid brokerage commissions. D) following the advice of technical analysts.
Which of the following statements is FALSE about the demand curve?
A) An increase in demand shifts the demand curve to the left, closer to the price axis. B) When only the price of a good changes, there is movement along the demand curve but no change in demand. C) A change in demand is graphically shown by shifting the entire demand curve. D) When demand decreases, there is a drop in the quantity demanded at each price.