Which of the Following Statements Is TRUE? Price Floors Set

question 70

Multiple Choice

Which of the following statements 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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