Asked by

Antonio Ferreira
on Oct 13, 2024

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When there is a price floor there will be

A) a shortage.
B) a surplus.
C) either a shortage or a surplus.
D) neither a shortage nor a surplus.

Price Floor

A government- or authority-imposed minimum price on goods or services, below which they cannot be sold, usually set to prevent market prices from falling too low.

Shortage

A scenario where the market demand for a service or product surpasses its available supply.

Surplus

An amount of something left over when requirements have been met; an excess of production or supply.

  • Ascertain the impact of implementing price controls like price ceilings and floors on surplus or shortage in the market.
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chris montgomeryOct 15, 2024
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