-Refer to the graph above to answer this question.What would be the effect of a price floor set $20 below the equilibrium price?

Name: -Refer to the graph above to answer this question.What would be the effect of a price floor set $20 below the equilibrium price?
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

Setting a price floor $20 below the equilibrium price would have no effect because the market price would naturally adjust to the equilibrium price, where supply equals demand, resulting in neither a surplus nor a shortage.

-Refer to the Graph Above to Answer This Question