A Binding Price Floor

Multiple Choice

A binding price floor
(i) Causes a surplus.
(ii) Causes a shortage.
(iii) Is set at a price above the equilibrium price.
(iv) Is set at a price below the equilibrium price.

A) (i) only
B) (iii) only
C) (i) and (iii) only
D) (ii) and (iv) only