Moderate

A legally determined price above the equilibrium price is__________________?

Correct answer: A. Floor price

  • A. Floor price
  • B. Ceiling price
  • C. Equilibrium price
  • D. None

Explanation

A price floor is a legally imposed minimum price and is effective when set above equilibrium, creating possible surplus supply. A price ceiling is a maximum price and is generally set below equilibrium.

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