Which of the following will tend to occur if price floors are imposed on a product?
A)persistent surpluses
B)problems of disposal of goods
C)disguised discounts developing to eliminate excess production
D)overinvestment in the industry
E)All of the above are correct.

Question

Which of the following will tend to occur if price floors are imposed on a product?
A)persistent surpluses 
B)problems of disposal of goods 
C)disguised discounts developing to eliminate excess production 
D)overinvestment in the industry 
E)All of the above are correct.

Quizplus · Accepted Answer

Price floors set above equilibrium price lead to surpluses, disposal issues, disguised discounts, and overinvestment as producers respond to artificially high prices.

Which of the Following Will Tend to Occur If Price