Why is it often difficult to remove a binding price floor after it exists? Choose one:

A. in general, because consumers benefit from larger products and would lobby their elected officials to keep the price control.

B. in general, because consumers benefit from higher quality products and would lobby their elected officials to keep the price control.

C. in general, because it has little effect on the market price and people forget about it.

D. in general, because consumers benefit from the lower prices and would lobby their elected officials to keep the price control.

E. in general, because sellers benefit from higher prices and would lobby their elected officials to keep the price control

Question

Magdalena Case

Business

17 July, 12:37

Why is it often difficult to remove a binding price floor after it exists? Choose one:

A. in general, because consumers benefit from larger products and would lobby their elected officials to keep the price control.

B. in general, because consumers benefit from higher quality products and would lobby their elected officials to keep the price control.

C. in general, because it has little effect on the market price and people forget about it.

D. in general, because consumers benefit from the lower prices and would lobby their elected officials to keep the price control.

E. in general, because sellers benefit from higher prices and would lobby their elected officials to keep the price control

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Answers (1)

Know the Answer?

Dahlia Hanson · Answer 1

D. in general, because consumers benefit from the lower prices and would lobby their elected officials to keep the price control.

Explanation:

Binding price floor is a favourable pricing condition for consumers imposed by government on sellers for this reason consumers will find all means to ensure the price remains the same.