Which of the following is true of a price floor?
A.
The price floor shifts the demand curve to the left.
B.
An effective floor creates a shortage of the good.
C.
The price floor shifts the supply curve of the good to the right.
D.
To be an effective floor, it must be set above the equilibrium price.
E.
The government sets the price floor to assist consumers who are exploited at the equilibrium price.
Exam No： AP Micro Practice Test 4 Year：2024 Question No：14
Answer:
D
Knowledge points:
2.6 Market Equilibrium and Consumer and Producer Surplus
2.7 Market Disequilibrium and Changes in Equilibrium
2.8 The Effects of Government intervention in Markets
Solution:
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