When a price floor is non-binding, the floor price is the equilibrium price; when a price floor is binding, the floor the equilibrium price. price is below; below above; above above; below below: above

When a price floor is non-binding, the floor price is the equilibrium price; when a price floor is binding, the floor the equilibrium price. price is below; below above; above above; below below: above

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 4P

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Question

When a price floor is non-binding, the
floor price is
the equilibrium price;
when a price floor is binding, the floor
the equilibrium price.
price is
O below; below
above; above
O above; below
O below; above

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