Even if a price floor is imposed below the equilibrium price and is therefore, non-binding, it will:
A) Lead to the creation of s surplus.
B) Lead to the creation of a shortage.
C) will tend to lower prices on average and transfer surplus from the sellers to the buyers.
D) will tend to raise prices on average and transfer surplus from the buyers to the sellers.

Question

Quizplus · Accepted Answer

The Answer of Even if a price floor is imposed below the equilibrium price and is therefore, non-binding, it will:
A) Lead to the creation of s surplus.
B) Lead to the creation of a shortage.
C) will tend to lower prices on average and transfer surplus from the sellers to the buyers.
D) will tend to raise prices on average and transfer surplus from the buyers to the sellers.

Even If a Price Floor Is Imposed Below the Equilibrium