Which of the following is NOT a potential result of a price floor?
A) excess supply
B) price greater than free-market equilibrium price
C) Lower quality inputs are used, which increases marginal cost.
D) All of the above.

Question

Quizplus · Accepted Answer

A price floor can result in excess supply and a price greater than the free-market equilibrium price, but it would not result in lower quality inputs being used. This is more likely to be a result of a price ceiling, which can lead to lower quality of goods or services.

Which of the Following Is NOT a Potential Result of a Price