QUESTION 3 Why does a surplus exist under a binding price floor? a. It encourages buyers to purchase more of the product. b. It makes the price so high that the quantity supplied exceeds the quantity demanded in the legal market. c. It makes the price so low that the quantity demanded exceeds the quantity supplied on the legal market. d. It discourages sellers from increasing the quality of the product they sell, which, in turn, increases the quantity demanded. e. It encourages sellers to produce less of the product 0OO0
QUESTION 3 Why does a surplus exist under a binding price floor? a. It encourages buyers to purchase more of the product. b. It makes the price so high that the quantity supplied exceeds the quantity demanded in the legal market. c. It makes the price so low that the quantity demanded exceeds the quantity supplied on the legal market. d. It discourages sellers from increasing the quality of the product they sell, which, in turn, increases the quantity demanded. e. It encourages sellers to produce less of the product 0OO0
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 2QCMC
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