Which of the following is not a potential result of a price floor?
A) excess supply
B) price greater than free-market equilibrium price
C) Lower quality inputs are used, which increases marginal cost.
D) all of the above

Question

Quizplus · Accepted Answer

A price floor can lead to excess supply and a price greater than the free-market equilibrium price. However, it does not necessarily lead to lower quality inputs being used, which increases marginal cost. This would be a result of a decrease in supply due to factors such as higher production costs or reduced inputs, rather than a price floor.

Which of the Following Is Not a Potential Result of a Price