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A nonbinding price floor has the following consequences: The quantity demanded will always exceed the quantity supplied. There will be upward pressure on prices until quantity demanded equals quantity supplied. The quantity demanded will always be smaller than the quantity supplied. There are no consequences to a nonbinding price floor.
A nonbinding price floor has the following consequences: The quantity demanded will always exceed the quantity supplied. There will be upward pressure on prices until quantity demanded equals quantity supplied. The quantity demanded will always be smaller than the quantity supplied. There are no consequences to a nonbinding price floor.
The correct consequence of a nonbindingpricefloor is that the quantitydemandedwill always be larger than the quantity supplied.A price floor is a minimum price set by the government or a regulatory body that is above the equilibrium price in a market. When the price floor is set below the equilibrium price,it has no effect on the market because themarketprice is already higher than the price floor. In this case, the price floor is considerednonbinding because it does not impact market outcomes.Since the price floor is below the equilibrium price, the quantity demanded by consumers will exceed the quantity supplied by producers. This is becauseconsumersare willing to purchase more at the lower market price, while producers are willing to supply less at the lower price.As a result, there is excess demand or a shortage in the market.The other options mentioned in the statement are incorrect. Upward pressure on prices and theequalityof quantity demanded and quantitysupplied occur when the price floor is binding, i.e., set above the equilibrium price.In the case ofnonbindingprice floor, there are as no consequences on prices or the equilibrium quantity, as the market operates freely based on supply and demand forces.Learn more aboutDemandhere -:brainly.com/question/1245771#SPJ11" Complete question"A nonbinding price floor has the following consequences: The quantity demanded will always exceed the quantity supplied. There will be upward pressure on prices until quantity demanded equals quantity supplied. The quantity demanded will always be smaller than the quantity supplied. There are no consequences to a nonbinding price floor. Do all buyers benefit from a binding price ceiling? No. A binding price ceiling benefits no buyers because sellers are unwilling to sell any of their products. Yes. A binding price ceiling benefits all buyers because it allows them to obtain the good in the legal market. No. A binding price ceiling benefits only some buyers because not all are able to obtain the good in the legal market. No. A binding price ceiling benefits no buyers because they are unwilling to buy any of the products at a price higher than the equilibrium...