Which of the following is true?
i.A price support is inefficient.
ii.A price floor set above the equilibrium price creates a surplus.
iii.A price ceiling set above the equilibrium price creates a black market.
A) Only i
B) Only ii
C) Only iii
D) i and ii
E) ii and iii

Question

Quizplus · Accepted Answer

A price support is inefficient because it can lead to overproduction and waste. A price floor set above the equilibrium price creates a surplus because it results in a higher quantity supplied than demanded.

Which of the Following Is True