The Excess Supply Created When Governments Impose a Price Floor

question 168

Multiple Choice

The excess supply created when governments impose a price floor is:

• A) shrinking as the floor rises.
• B) the difference between the old quantity supplied and new quantity demanded.
• C) the difference between the new quantity supplied and the old quantity demanded.
• D) the difference between the new quantity supplied and the new quantity demanded.
• E) actually efficient because prices are higher for suppliers.

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