If a price floor is above the equilibrium price it will have no effect in the market.

Question

Quizplus · Accepted Answer

If a price floor is set above the equilibrium price, it creates a minimum price at which goods must be sold. This means that suppliers will be forced to sell their goods at a higher price than the market is willing to pay, leading to a surplus of products and a decrease in demand. Therefore, a price floor above the equilibrium price will have an impact on the market.

If a Price Floor Is Above the Equilibrium Price It