Question

Price floors usually results in _______. A. Fewer units sold B. Surplus C. Shortage

Answer 1

The correct answer is C) shortage.

Price floors usually result in a shortage.

The lowest legal price for a commodity to be sold is called Price Floor. The government uses price floors to prevent prices from going too low that could affect the market. Sometimes, when the government wants to protect industries such as Agriculture, for instance, it establishes price floors to protect farmers and their goods. The risk floor prices have is that it can create shortages.

Answer 2

Answer:

Equilibrium

Explanation:

Got every other option wrong on the test. Both attempts and the final.