In the above market,economists would call a government-set minimum price of $50 a:

Question

Quizplus · Accepted Answer

A price floor is a government-imposed minimum price that cannot be lower than a certain level. In this case, the minimum price of $50 is above the equilibrium price, which would be determined by the intersection of the demand and supply curves. This creates a surplus of supply, as producers are willing to supply more than consumers are willing to purchase at the higher price. Therefore, the only logical option is B) price floor.

In the Above Market,economists Would Call a Government-Set Minimum Price