Respuesta :
if a nonbinding price floor is imposed on a market, then the quantity sold will stay the same.
Here are the options of this question:
- then the a quantity sold in the market will stay the same
- quantity sold in the market will decrease
- price in the market will increase
- price in the market will decrease
A price floor is when the minimum price for a good or service is set by the government or an agency of the government. Price floor is usually set for agricultural products. This is done to encourage suppliers of goods and services.
Types of price floor
- Binding price floor: this is the price floor that is set above equilibrium price. When the price floor is binding, the supply of a good would increase.
- Non-binding price floor: this is the price floor that is set below equilibrium price. When the price floor in nonbinding, there would be no change in supply.
An example: If the price of a good is $10. The equilibrium price is $12. If the government sets the price as $14. This is a binding price floor. If the price is set below $12, it is a nonbinding price floor.
To learn more about price floors, please check: https://brainly.com/question/13335147?referrer=searchResults
