If the government imposes a price floor that is above the equilibrium price,then the market will experience

Question

Quizplus · Accepted Answer

When the government imposes a price floor above the equilibrium price, it results in a price that is higher than what the market would naturally set. This leads to an excess supply because producers are willing to supply more at the higher price, but consumers are not willing to buy as much at that price, leading to a surplus of the product in the market.

If the Government Imposes a Price Floor That Is Above