When the government imposes a price floor above the market price,the result will be that

Question

Quizplus · Accepted Answer

When the government imposes a price floor above the market price, it creates a situation where suppliers are unable to sell all of their goods at the higher price, leading to a surplus. This is because the demand for the goods at the higher price is lower than the supply, resulting in excess supply. Therefore, choice A is the correct answer.

When the Government Imposes a Price Floor Above the Market