Which of the following is a symptom of a price floor?
A)scalping of Super Bowl tickets
B)surplus cheese
C)the New York city housing shortage
D)black markets
E)milk shortages

Question

Which of the following is a symptom of a price floor?
A)scalping of Super Bowl tickets 
B)surplus cheese 
C)the New York city housing shortage 
D)black markets 
E)milk shortages

Quizplus · Accepted Answer

A price floor is a government-imposed minimum price that is above the equilibrium price. This results in a surplus of the product, which is the excess supply of a product that occurs when the quantity supplied exceeds the quantity demanded at a given price. Surplus cheese is a clear example of a symptom of a price floor because the government sets a minimum price for cheese, which leads to a surplus of cheese that cannot be sold at the higher price. The surplus cheese is then stored and the government often buys the excess cheese to help support the market.

Which of the Following Is a Symptom of a Price