A market with a price floor creates Group of answer choices A: a shortage of goods and services in the market. B: a greater quantity demanded in the market than quantity supplied. C: excess demand for goods and services. D: a surplus of goods and services in the market.

A market with a price floor creates Group of answer choices A: a shortage of goods and services in the market. B: a greater quantity demanded in the market than quantity supplied. C: excess demand for goods and services. D: a surplus of goods and services in the market.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 1MC

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Question

A market with a price floor creates

Group of answer choices

A: a shortage of goods and services in the market.

B: a greater quantity demanded in the market than quantity supplied.

C: excess demand for goods and services.

D: a surplus of goods and services in the market.

Definition Video Definition Lowest legal price that can be paid in a market for goods and services, labor, or financial capital. A price floor protects a price from falling below a stipulated level. Video

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