A price floor set below the equilibrium price will result in a surplus.

Name: A price floor set below the equilibrium price will result in a surplus.
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Question

Quizplus · Accepted Answer

A price floor set below the equilibrium price will not have any impact on the market as it will not be binding. Therefore, it will not result in a surplus. A price floor set above the equilibrium price will be binding and result in a surplus.

A Price Floor Set Below the Equilibrium Price Will Result