187k views
0 votes
What are the costs and benefits of a price Floor

User Gifted
by
6.4k points

1 Answer

3 votes

Answer:Which is one effect of a price floor?

Price floors prevent a price from falling below a certain level. When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result. Price floors and price ceilings often lead to unintended consequences.

Step-by-step explanation:

User Kunruh
by
7.2k points