Which of the following might explain why the government would create a price floor for a certain good?
A) The equilibrium price that would result in the market would be considered too high
B) The equilibrium price that would result in the market would be considered too low
C) The equilibrium quantity that would result in the market would be considered too high
D) The equilibrium quantity that would result in the market would be considered too low
E) The market will never achieve equilibrium on its own

Question

Quizplus · Accepted Answer

A price floor is set above the equilibrium price to prevent the price from being too low, ensuring producers receive a minimum income.

Which of the Following Might Explain Why the Government Would