Answered: What is the effect of a price floor…

What is the effect of a price floor implemented above equilibrium price? No Effect None of these answers. Surplus Shortage

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 30RQ: How does a price floor 521 above the equilibrium level affect quantity demanded and quantity1...

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Question

What is the effect of a price floor implemented above equilibrium price?
No Effect
None of these answers.
Surplus
Shortage
O O O

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When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded.

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