Price Ceilings, Price Floors, and Black Markets

5. Consumer and Producer Surplus; Price Ceilings and Price Floors / Price Ceilings, Price Floors, and Black Markets / Problema 10

Problema 10

Which of the following is a characteristic of a price floor?

It is a legal minimum price.

It causes a shortage when set below equilibrium.

It is a legal maximum price.

It has no effect when set above equilibrium.