Q:
      
      
         
            
A binding price floor causes
         
       
      
      
      
          
      
      
          Answer & Explanation
         Answer: B) Surplus supply of goods         
         
Explanation: A price floor is the minimum price that can be charged. A binding price floor occurs when the government sets a required price on goods at a price above equilibrium. Because the government requires that prices not drop below this price, that price binds the market for that good.
A binding price ceiling is one that is set below equilibrium price.
       
      
      
      
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