When the government removes a binding price floor:

A) quantity demanded will decrease and quantity supplied will increase.
B) quantity demanded will increase and quantity supplied will decrease.
C) excess demand will develop.
D) excess supply will develop.

Binding Price Floor

A government-imposed minimum price set above the equilibrium price, leading to a surplus of the product in the market.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific period.