The likely result of a price floor is a _____ of the good at a price _____ the equilibrium price.
A) surplus; above
B) shortage; below
C) surplus; below
D) shortage; above

Question

Quizplus · Accepted Answer

A price floor set above the equilibrium price results in a surplus because it leads to a higher price than consumers are willing to pay, reducing quantity demanded while increasing quantity supplied.

The Likely Result of a Price Floor Is a _____