Author Question: A side effect of a price floor set above the equilibrium price is: a. the new price is below ... (Read 111 times)

Bob-Dole · **on:** Jun 30, 2018

A side effect of a price floor set above the equilibrium price is:
a. the new price is below equilibrium price.
b. an excess supply of the good is created.
c. an excess demand for the good is created.
d. the supply of the good decreases.
e. the demand for the good increases.

Question 2

A price floor is:
a. the lowest price a producer will accept.
b. the lowest price a consumer will pay.
c. a minimum price set by the government above equilibrium price.
d. a maximum price set by the government above equilibrium price
e. usually set equal to equilibrium price.