If the equilibrium price of lettuce is $.80 per head and the government imposes a price floor of $.70 per head,the price of lettuce will

Question

Quizplus · Accepted Answer

Since the equilibrium price is already higher than the price floor, there will be no effect on the price of lettuce. The market will continue to operate at the equilibrium price of $.80 per head. Therefore, the price of lettuce will remain at $.80 per head.

If the Equilibrium Price of Lettuce Is