Asked by
Antonio Ferreira
on Oct 13, 2024Verified
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.
Verified Answer
CM
Learning Objectives
- Ascertain the impact of implementing price controls like price ceilings and floors on surplus or shortage in the market.