A market price floor for wheat:
A) increases the price paid by consumers.
B) decreases the price paid by consumers.
C) decreases the price received by farmers.
D) does not change the price received by farmers.

Question

Quizplus · Accepted Answer

A market price floor, when set above the equilibrium price, increases the price paid by consumers because it establishes a minimum price that is higher than what the market would naturally set. This leads to consumers paying more for the product.

A Market Price Floor for Wheat