Use the following to answer questions
Figure: Determining Surplus and Loss
-(Figure: Determining Surplus and Loss)In the graph,a price of $ 5 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,a price of $ 5 would allow for an effective price floor.

Quizplus · Accepted Answer

A price floor is effective only if it is set above the equilibrium price. If $5 is below the equilibrium price, it would not be effective.

Use the Following to Answer Questions