-Refer to Figure 3.15 to answer this question.What would be the result if an effective price floor is set that is $2 different from the equilibrium price?

Name: -Refer to Figure 3.15 to answer this question.What would be the result if an effective price floor is set that is $2 different from the equilibrium price?
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

A price floor set above the equilibrium price leads to a surplus because the higher price encourages producers to supply more than consumers are willing to buy at that price.