A good example of a price floor is:
a. rent controls on apartments in major cities.
b. general admission tickets to concerts.
c. the minimum wage law.
d. food stamp regulations.
e. rock concert tickets.
Question 2
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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