For a price floor to be effective, the price must be set above the market equilibrium price.

Name: For a price floor to be effective, the price must be set above the market equilibrium price.
Brand: Quizplus
Rating: 4.9 (32 reviews)

Question

Quizplus · Accepted Answer

A price floor is effective in creating a surplus or reducing consumption only if it is set above the market equilibrium price, where the quantity supplied becomes greater than the quantity demanded.

For a Price Floor to Be Effective, the Price Must