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What Occurs Whenever a Price Floor Is Imposed Above Equilibrium

Question 132

Multiple Choice

What occurs whenever a price floor is imposed above equilibrium price?


A) The supply will increase due to a higher price until it just equals the quantity demanded.
B) The demand will increase due to a higher price and a shortage will result.
C) The quantity supplied will exceed the quantity demanded.
D) The supply will increase due to a higher price and a surplus will result.

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