Which of the following is most likely to generate a surplus?
A) a price floor
B) a price ceiling
C) an illegal market
D) all of these

Name: Which of the following is most likely to generate a surplus? A) a price floor B) a price ceiling C) an illegal market D) all of these
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Question

Quizplus · Accepted Answer

A price floor sets a minimum price for a good or service, meaning that the price cannot fall below that level. This creates a surplus because at the higher price, there will be more quantity supplied than demanded.

Which of the Following Is Most Likely to Generate a Surplus