Question

The presence of price floors in a market is usually an indication that: the forces of supply and demand are unable to establish an equilibrium price. policymakers believe the price floor does not involve inequities. there is an insufficient quantity of a good or service being produced. the sellers of the good or service outnumber the buyers.

Answer 1

When there is a price floor in the market, this usually means that  the sellers of the good or service outnumber the buyers.

What is a price floor?

• It refers to an amount that the price of a good is not allowed to fall below.
• It is imposed by the government to prevent market failure.

The reason the price might fall so low that a price floor would be implemented is that there are more suppliers in the market than consumers. The price will therefore fall according to the Law of Demand.

In conclusion, option D is correct.

Find out more on the law of demand at brainly.com/question/1078785.