Suppose a price floor is imposed on eggs above their equilibrium price. The likely result will be:
A) a lower equilibrium price for eggs as the demand curve for eggs shifts left.
B) a higher equilibrium price for eggs as the supply curve for eggs shifts left.
C) a decrease in the quantity of eggs demanded.
D) an increase in the quantity of eggs demanded.

Question

Quizplus · Accepted Answer

A price floor set above the equilibrium price will lead to a surplus, as the quantity supplied will exceed the quantity demanded, resulting in a decrease in the quantity of eggs demanded.

Suppose a Price Floor Is Imposed on Eggs Above Their