After a price floor of $23 is placed on the market in the graph shown:

Question

Quizplus · Accepted Answer

A price floor creates a minimum price that must be paid in the market. As a result, consumers who would have been willing to pay a lower price are unable to purchase the product, resulting in a loss for them. Some producers, on the other hand, benefit from the higher price because they are now able to sell their goods at a higher price. However, since the minimum price is above the previous equilibrium price, there is a decrease in the quantity traded in the market, meaning that both consumers and producers are worse off in the market. Therefore, all three statements are true.

After a Price Floor of $23 Is Placed on the Market