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. there will be a shortage in the market.
a
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Which of the following documents established "rules of the game"?
A) The Book of Exodus B) The Scrabble Players Dictionary C) The Bylaws of the AFL-CIO D) The Constitution of South Africa E) All of the above.
The cost of group health insurance is lower than if an individual buys a policy on his own because
A) moral hazard costs of a group tend to move to a low average. B) insuring a group eliminates the problem of buyers having more information than the seller. C) it is easier for the company to deny claims from a large group. D) the problem of adverse selection is reduced.