Subject - Economics:

Microeconomics

MCQ - 122-4132

Question:

Suppose a price floor is installed in the market for coffee. One result of this policy would be

a decrease in the demand for coffee-brewing machines.
a persistent shortage of coffee in the market.
an increase in consumer surplus due to lower coffee prices.
a persistent shortage of coffee in the market.
a decrease in the profits for the owners of coffee plantations.

Correct Answer: A

Explanation:

A price floor is a legal minimum price set above the equilibrium price. Higher coffee prices decrease the demand for complementary goods like coffee machines.

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269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: Suppose a price floor is installed in the market for coffee. One result of this policy would be , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 122-4132.

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Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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