Use the following to answer questions
Figure: Determining Surplus and Loss
-(Figure: Determining Surplus and Loss)In the graph,which price would NOT 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 NOT allow for an effective price floor?

Quizplus · Accepted Answer

A price floor is effective only if it is set above the equilibrium price. If $6 is below the equilibrium price, it would not be effective.

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