Suppose Anthony Lives in a Community with No Price Controls

Multiple Choice

Suppose Anthony lives in a community with no price controls.What would he expect to happen if his town borders a community where there is a binding price floor on most products?

A) Prices in the legal market in the community with a binding price floor would fall.
B) There would be smaller surpluses in the community with a binding price floor.
C) More consumers would purchase the product in the community without a price floor.
D) The black market in the community with a binding price floor would be larger.
E) Sales of the product in the community with a binding price floor would increase.