What Occurs Whenever a Price Floor Is Imposed Above Equilibrium

question 149

Multiple Choice

What occurs whenever a price floor is imposed above equilibrium price?

• A) The supply will increase due to a higher price until it just equals the quantity demanded.
• B) The demand will increase due to a higher price and a shortage will result.
• C) The quantity supplied will exceed the quantity demanded.
• D) The supply will increase due to a higher price and a surplus will result.

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