Either a price floor or a price ceiling above the equilibrium price would cause a surplus.

Question

Quizplus · Accepted Answer

A price ceiling above the equilibrium price would not cause a surplus because it is set above the market-clearing level, allowing the market to function normally without creating excess supply. A price floor above equilibrium could cause a surplus, but the statement incorrectly includes a price ceiling above equilibrium as also causing a surplus.

Either a Price Floor or a Price Ceiling Above the Equilibrium