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.
Correct Answer:
Verified
Related Questions
Q5: Price ceilings cause surpluses.
Q127: TABLE 4-4 Q128: If the market for peaches is in
![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents