A price floor for a product results in a
A)gain in consumer surplus.
B)decrease in producer surplus.
C)deadweight loss.
D)decrease in deadweight loss.
E)shortage.

Question

Quizplus · Accepted Answer

A price floor, when set above the equilibrium price, typically results in a surplus of the product because the price is too high for consumers to purchase all of the goods produced, leading to inefficiencies in the market and a deadweight loss.

A Price Floor for a Product Results in a