Which of the following is not the likely outcome of establishing a legal price floor?

Question

Quizplus · Accepted Answer

A legal price floor, set above the equilibrium price, typically results in surplus goods because the price is too high for consumers to purchase all the goods produced, leading to A) surplus goods. It also means B) sellers might receive artificially high incomes because they are selling their goods at a higher price than the market would naturally dictate. C) Buyers paying higher prices is a direct consequence of a price floor set above the equilibrium price. D) The market is not in equilibrium because the price floor disrupts the natural balance of supply and demand. E) is incorrect because a price floor, by guaranteeing a minimum price for goods, actually encourages resources to enter the industry, contrary to discouraging them.

Which of the Following Is Not the Likely Outcome of Establishing