The market will be in equilibrium if ________ is set ________ the equilibrium price.
A) a price floor; below
B) a price ceiling; below
C) actual price; above
D) actual price; below

Question

Quizplus · Accepted Answer

A price floor is a government-imposed minimum price for a good or service. If the price floor is set below the equilibrium price, there will be a surplus of the good or service, as producers will be willing to supply more than consumers are willing to buy at that price.

The Market Will Be in Equilibrium If ________ Is Set