Binding Price Floor Consumer Surplus

A price floor is an established lower boundary on the price of a commodity in the market. A binding price floor is a required price that is set above the equilibrium price. Total surplus with a binding price floor 0 2 4 6 8 10 12 14 16 18 0 2 4 6 8 10 12 14 16 18 20 p q price floor b b b b b b b a b c e d f g price floor.

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