When a price floor is above the equilibrium price
A. quantity demanded will exceed quantity supplied.
B. Quantity supplied will exceed quantity demanded
C. The market will be in equilibrium.
D. This is a trick question because price floors generally exist below the equilibrium price
Answer:B
When a price floor is above the equilibrium price
A. quantity demanded will exceed quantity supplied. B. Quantity supplied will exceed quantity demanded C. The market will be in equilibrium. D. This is a trick question because price floors generally exist below the equilibrium price