A price floor is a reasonable price control mechanism to impose in cases where the government believes the market's equilibrium price
a. creates an excess supply that will force price downward
b. is too high
c. creates an excess demand that will force price upward
d. is too low
e. is higher than the market price
D
Economics
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As price increases, demand typically
a. becomes more elastic b. becomes less elastic c. does not change d. elasticity does not change
Economics
A fall in the price of milk, used in the production of ice cream, will:
A. Decrease the supply of ice cream B. Increase the supply of ice cream C. Cause a movement along the supply curve of ice cream D. Have no effect on the supply of ice cream
Economics