If a Price Floor Is Set Below the Equilibrium Price

question 28

Multiple Choice

If a price floor is set below the equilibrium price in a market

• A) a surplus results.
• B) a shortage results.
• C) the equilibrium price cannot be reached.
• D) there is no impact on the market.

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Definitions:

Steal

The act of taking something without permission or legal right and without intending to return it.

Consumer

An individual or group who uses goods and services produced within an economy.

Specific Product

A particular good or service that is distinct because of its brand, model, or other identifying characteristic.

Lower Price

A decrease in the cost at which goods or services are sold, often resulting from factors like increased supply or decreased demand.