For a particular product, an effective price floor results in
A) quantity demanded greater than quantity supplied.
B) quantity supplied greater than quantity demanded.
C) quantity demanded equal to quantity supplied.
D) demand equal to supply.

Question

Quizplus · Accepted Answer

A price floor set above the equilibrium price causes a surplus, where the quantity supplied is greater than the quantity demanded.

For a Particular Product, an Effective Price Floor Results in