Author Question: If the government imposes a price floor above the market equilibrium price, then: a. b and e. b. ... (Read 74 times)

2125004343 · **on:** Jun 30, 2018

If the government imposes a price floor above the market equilibrium price, then:
a. b and e.
b. there will be excess supply.
c. there will be excess demand.
d. consumers will benefit.
e. producers will benefit.

Question 2

One of the problems created by price floors set above the equilibrium is:
a. consumers complain about high prices.
b. firms don't have incentives to reduce costs.
c. the creation of surplus.
d. how to cope with the shortages.
e. the impact on firm profitability.