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Figure: Determining Surplus and Loss
-(Figure: Determining Surplus and Loss)In the graph,which price would allow for an effective price floor?

Question

Use the following to answer questions 
Figure: Determining Surplus and Loss 
-(Figure: Determining Surplus and Loss)In the graph,which price would allow for an effective price floor?

Quizplus · Accepted Answer

An effective price floor must be set above the equilibrium price to create a surplus. $12 is likely above the equilibrium price, making it an effective price floor.

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