Why does a surplus exist under a binding price floor? It encourages sellers to produce less of the product. It encourages buyers to purchase more of the product. It makes the price so high that the quantity supplied exceeds the quantity demanded in the legal market. It makes the price so low that the quantity demanded exceeds the quantity supplied on the legal market. It discourages sellers from increasing the quality of the product they sell, which, in turn, increases the quantity demanded.
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