A price support system that raises price above the normal equilibrium will cause a

Question

Quizplus · Accepted Answer

When a price support system raises price above the normal equilibrium, it creates a situation where the price is artificially high. This means that fewer consumers will be willing to purchase the product at the higher price, leading to a decrease in the quantity demanded. The other options are not correct because the system does not affect supply or demand directly - it only affects the market price. Therefore, there would be no shift in supply or demand, and the quantity supplied would not necessarily decrease.

A Price Support System That Raises Price Above the Normal