Consider a market for some good where a binding price floor is in place. The surpluses associated with this binding price floor will be the smallest when Select one: O A. both supply and demand are unit elastic. O B. supply is highly inelastic and demand is highly elastic. O C. both supply and demand are highly elastic. OD. both supply and demand are highly inelastic. O E. supply is highly elastic and demand is highly inelastic.
Consider a market for some good where a binding price floor is in place. The surpluses associated with this binding price floor will be the smallest when Select one: O A. both supply and demand are unit elastic. O B. supply is highly inelastic and demand is highly elastic. O C. both supply and demand are highly elastic. OD. both supply and demand are highly inelastic. O E. supply is highly elastic and demand is highly inelastic.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer ASAP correctly with proper explanation of the each option
Transcribed Image Text:Consider a market for some good where a
binding price floor is in place. The surpluses
associated with this binding price floor will be
the smallest when
Select one:
O A. both supply and demand are unit
elastic.
OB. supply is highly inelastic and
demand is highly elastic.
O C. both supply and demand are highly
elastic.
O D. both supply and demand are highly
inelastic.
O E. supply is highly elastic and demand
is highly inelastic.
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