If a price floor is not binding, then O the equilibrium price is above the price floor. O the equilibrium price is below the price floor. O there will be a surplus in the market. O there will be a shortage in the market.

If a price floor is not binding, then O the equilibrium price is above the price floor. O the equilibrium price is below the price floor. O there will be a surplus in the market. O there will be a shortage in the market.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 23P

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If a price floor is not binding, then
O the equilibrium price is above the price floor.
O the equilibrium price is below the price floor.
O there will be a surplus in the market.
O there will be a shortage in the market.

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