A price floor on corn would have the effect of
A) creating a surplus regardless of the level at which the price floor is set
B) creating a surplus supply when the floor is above the equilibrium price
C) creating a shortage when the price floor is set below the equilibrium price
D) creating a shortage regardless of where the price floor is set
E) ensuring a more equitable distribution of the good among consumers
Correct Answer:
Verified
Q13: Q14: Federal subsidies to higher education have the Q15: A government-imposed price ceiling set below the Q16: Suppose that a market is initially in![]()
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