When a Price Floor Is Above the Equilibrium Price

question 196

Multiple Choice

When a price floor is above the equilibrium price,

• A) quantity demanded will exceed quantity supplied, so there will be a shortage.
• B) quantity supplied will exceed quantity demanded, so there will be a surplus.
• C) the market will be in equilibrium.
• D) This is a trick question because price floors are generally set below the equilibrium price.

---

Definitions:

Synostosis

A condition or process where two bones, previously separate, fuse together across a joint, eliminating its movement.

Suture

A type of joint found in the human skull where bones are joined by a rigid, fibrous connection, or the act of stitching tissues together during surgery.

Syndesmosis

A type of fibrous joint in which two bones are joined together by a ligament or a membrane, allowing for slight movement.

Gomphosis

Fibrous joint in which a peglike process fits into a hole.