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Suppose That a Binding Price Floor Is in Place in a Particular

Question 146

Multiple Choice

Suppose that a binding price floor is in place in a particular market. If the market is deregulated and the price floor is removed:


A) the quantity demanded will decrease and the quantity supplied will increase.
B) excess demand will develop.
C) the quality of the good supplied will decrease.
D) the quality of the good supplied will improve.

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