A price floor that sets the price of a good above market equilibrium will cause
A) a decrease in quantity demanded of the good.
B) an increase in quantity supplied of the good.
C) a surplus of the good.
D) all of the above.

Question

Quizplus · Accepted Answer

A price floor above equilibrium leads to a higher price, reducing quantity demanded (A), increasing quantity supplied (B), and resulting in a surplus (C).

A Price Floor That Sets the Price of a Good