A Price Floor on Corn Would Have the Effect of

question 2

Multiple Choice

A price floor on corn would have the effect of

• A) creating a surplus regardless of the level at which the price floor is set
• B) creating a surplus supply when the floor is above the equilibrium price
• C) creating a shortage when the price floor is set below the equilibrium price
• D) creating a shortage regardless of where the price floor is set
• E) ensuring a more equitable distribution of the good among consumers

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