a-price-floor-is-set-at-25-while-the-equilibrium-price-is-20-what-is-the-likely-

Question

A price floor is set at $25, while the equilibrium price is $20. What is the likely outcome?

Accepted Answer

There will be a surplus.

Answer

The price floor will be ineffective.

Answer

The market will remain at equilibrium.

Answer

There will be a shortage.

A price floor is set at \$25, while the equilibrium price is \$20. What is the likely outcome?