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Sladkaya [172]
3 years ago
7

The graph shows the price of a good compared to the quantity demanded and the quantity supplied. On this graph, the top horizont

al line represents
Social Studies
1 answer:
xz_007 [3.2K]3 years ago
3 0
<h2>Answer choices are:</h2>

A) An ineffective price floor set above equilibrium

B) An effective price floor set below equilibrium

C) An ineffective price ceiling set above equilibrium

D) An effective price ceiling set below equilibrium

<h3>Answer:</h3><h2>A. An ineffective price floor set above the equilibrium.</h2><h3>Explanation:</h3>

A price floor is the lowest possible price at which a certain type of good is sold at. This is usually set by the government so as to keep the rate of goods from decreasing below a certain point. This price floor is indicated by a horizontal line on the graph above the intersection of the supply and demand curves.

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