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As a Seller of a Product Subject to a Binding

Question 135

Multiple Choice

As a seller of a product subject to a binding price floor,Makayla would be better off in which of the following situations?


A) Makayla would be better off under a binding price floor because she would be able to sell all that she produces at a higher price.
B) Makayla would be better off under a binding price floor because she would be able to sell goods that are smaller and cost less to produce.
C) Makayla would be better off under a binding price floor because she would be able to sell goods of lower quality,which cost less to produce.
D) Makayla would be better off under a binding price floor because she could sell any of the resulting surplus to the government.
E) There is no scenario where a seller is better off when selling a good that is subject to a binding price floor.

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