When a price floor is above the equilibrium price, a. quantity supplied will exceed quantity demanded, so there will be a surplus. b. quantity demanded will exceed quantity supplied, so there will be a shortage. c. the market will be in equilibrium. d. This is a trick question because price floors are generally set below the equilibrium price.

When a price floor is above the equilibrium price, a. quantity supplied will exceed quantity demanded, so there will be a surplus. b. quantity demanded will exceed quantity supplied, so there will be a shortage. c. the market will be in equilibrium. d. This is a trick question because price floors are generally set below the equilibrium price.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section: Chapter Questions

Problem 10AA

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