Answer
d) surplus
Work Step by Step
A binding price floor will lead to a price above the equilibrium price. This leads to quantity supplied to exceed quantity demanded. This excess supply leads to a surplus of the good to develop.
Principles of Economics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516587X
ISBN 13:
978-1-28516-587-5
Chapter 6 - Part II - Supply, Demand, and Government Policies - Quick Check Multiple Choice - Page 129: 1
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