Question

15Question(1 point) 1st attempt What will happen in a market where a nonbinding price floor is removed? Choose one:

A. The price or quantity of the product sold on the legal market will not change.
B. There will be increased pressure to buy and sell the good on the black market.
C. The products sold will become more plentiful.
D. There will be upward pressure on the prices.
E. There will be downward pressure on the prices.

Answer 1

A. The price or quantity of the product sold on the legal market will not change.

Step-by-step explanation:

Non-binding price floors are price floors that are set at lower points that the actual market value, so removing it will have little to no effect on the actual market because it wasn´t being taken into account from the start, price floors are set to ensure that a certain product does not go lower than a certain price to control prices, if the price in the market is between the floor and ceiling price nothing will happen if the price floor is removed.