Microeconomics

MCQ - 16-4026

Question:

Which of the following is true of a price floor?

The price floor shifts the demand curve to the left.
An effective floor creates a shortage of the good.
The price floor shifts the supply curve of the good to the right.
An effective floor creates a shortage of the good.
The government sets the price floor to assist consumers who are exploited at the equilibrium price.

Correct Answer: D

Explanation:

Price floors are legal minimum prices so they are set above equilibrium. A surplus results.

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

Read the MCQ statement: Which of the following is true of a price floor? , 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. 16-4026.

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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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