An effective price floor
A)Results in a surplus.
B)Results in a shortage.
C)Occurs when market prices are below equilibrium prices.

Name: An effective price floor A)Results in a surplus. B)Results in a shortage. C)Occurs when market prices are below equilibrium prices.
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Question

Quizplus · Accepted Answer

An effective price floor is set above the equilibrium price, leading to a surplus because the quantity supplied exceeds the quantity demanded at that price.

An Effective Price Floor