If a price floor is set at $23 in the market shown in the graph:

Question

Quizplus · Accepted Answer

If a price floor of $23 is set, some consumers will lose because they have to pay a higher price, and some producers will gain because they can sell their produce at a higher price. However, the quantity traded in the market would fall since the demand won't be able to keep up with the higher price causing a shortage of goods. Therefore, all of the given choices are correct.

If a Price Floor Is Set at $23 in the Market