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Question
The consequence of a price floor set below the equilibrium price is
a. a surplus, where the quantity demanded exceeds the quantity supplied.
b. a shortage, where the quantity demanded exceeds the quantity supplied.
c. a surplus, where the quantity supplied exceeds the quantity demanded.
d. a shortage, where the quantity supplied exceeds the quantity demanded.
e. nothing; the price floor will have no impact on the quantity demanded or the quantity supplied.
Answer
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