A side effect of a price floor set above the equilibrium price is:
A) the new price is below equilibrium price.
B) an excess supply of the good is created.
C) an excess demand for the good is created.
D) the supply of the good decreases.
E) the demand for the good increases.
Correct Answer:
Verified
Q111: Exhibit 4-9 Data on supply and
Q112: Exhibit 4-9 Data on supply and
Q113: A market consequence of the establishment of
Q114: A price floor would be established in
Q115: Suppose a price floor is set by
Q117: A market consequence of a price floor
Q118: The minimum price for a good set
Q119: A price floor is:
A) the lowest price
Q120: The former Soviet Union was known for
Q121: Exhibit 4-10 Supply and demand data
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