A price floor above the market clearing price typically results in
I. an excess quantity supplied
II. a shortage
III. an excess quantity demand

A) I only
B) II only
C) III only
D) II and III only

Answer: A

Economics

You might also like to view...

Which one of the following is normally the cheapest way to address water shortages?

a. Expanded development of groundwater aquifers b. Desalination c. Building dams d. Water conservation efforts e. Creating a system of property rights

Economics

What are the proximate causes of prosperity? How are they related to the fundamental causes of prosperity?

What will be an ideal response?

Economics