Which Statement(s) Is TRUE? Price Floors Set Above the Equilibrium

question 141

Multiple Choice

Which statement(s) is TRUE? Price floors set above the equilibrium price cause:
I. shortages.
II. surpluses.
III. deadweight losses.

• A) I and III only
• B) II and III only
• C) III only
• D) I is true if demand is elastic; however, II is true if demand is inelastic.

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