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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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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