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A perfectly competitive market currently has an effective (binding) price floor. If the price floor is eliminated, which of the following correctly describes the impact?

A

The quantity demanded and supplied would not change.

B

The quantity demanded would increase while the quantity supplied would decrease.

C

The demand would increase while the supply would decrease.

D

The quantity demanded would decrease while the quantity supplied would increase.

E

The demand would decrease while the supply would increase,

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