When a price floor that has an impact is removed,which of the following statements is correct?

Question

Quizplus · Accepted Answer

When a price floor (a minimum legal price set above the equilibrium price) is removed, the market seeks to return to equilibrium. This typically results in a decrease in the price, leading to a decrease in the quantity supplied as suppliers are less willing or able to supply the good at the lower price. Demand doesn't necessarily increase; it's the quantity demanded that adjusts to the new lower price.

When a Price Floor That Has an Impact Is Removed,which