Refer to the diagram. An effective government-set price ﬂoor is best illustrated by

Name: Refer to the diagram. An effective government-set price ﬂoor is best illustrated by
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Price C represents an effective government-set price floor because it is above the equilibrium price and creates a surplus of supply. This surplus indicates that producers are willing to supply more than consumers demand at the restricted price, and the government will buy the excess supply to maintain the price floor.

Refer to the Diagram