Suppose the Government Establishes a Binding Price Floor for Some

Multiple Choice

Suppose the government establishes a binding price floor for some product. At the price floor,

A) although sellers are selling all of the product that they desire, consumers are not able to buy all that they desire.
B) both sellers and buyers are exchanging the free- market equilibrium quantity.
C) although consumers are purchasing all of the product that they desire at this price, the sellers are not selling all that they desire.
D) both sellers and buyers are satisfied with the quantity that is being exchanged.
E) a new free- market equilibrium price and quantity will be established.