After a price floor of $23 is placed on the market in the graph shown:

Question

Quizplus · Accepted Answer

A price floor of $23 creates a minimum price that producers can charge for the good. Some consumers will lose, as they will have to pay a higher price than they would have in a free market. Some producers will gain, as they are now able to charge a higher price for their product. However, the higher price will also cause the quantity traded in the market to fall, as fewer consumers will be willing to purchase the good at the higher price. Therefore, all of these statements are true.

After a Price Floor of $23 Is Placed on the Market