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1 vote
On this graph, the top horizontal line represents?

a price floor set above equilibrium.
a price floor set below equilibrium.
a price ceiling set above equilibrium.
a price ceiling set below equilibrium.

User Econner
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2 Answers

3 votes

Answer:

a price floor set above equilibrium

Step-by-step explanation:

User Michael Phelps
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7.7k points
3 votes

Answer:

a price floor set above equilibrium

Step-by-step explanation:

A price floor is a concept to prevent prices from being too low. Generally, it is used by governments to prevent the rights of supplier and sellers. A horizontal line above the equilibrium depicts price floor. Usually, if a price is set above the equilibrium, excess supply or surplus of commodities take place which results in a decrease in the prices. This is why the price floor is normally set at equilibrium.

User Sparsh Dutta
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