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Recommended textbook solutions Principles of Economics8th EditionN. Gregory Mankiw 1,333 solutions Krugman's Economics for AP2nd EditionDavid Anderson, Margaret Ray 1,042 solutions Macroeconomics for AP1st EditionDavid Anderson, Margaret Ray 569 solutions Principles of Economics1st EditionTimothy Taylor 895 solutions How does a price floor set above the equilibrium price affect quantity demanded and quantity supplied quizlet?How does a price floor set above the equilibrium price affect quantity demanded and quantity supplied? It results in a greater quantity supplied than the quantity demanded, otherwise known as excess supply.
How does a price floor set above the equilibrium price affect quantity demanded and quantity supplied?When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result. When government laws regulate prices instead of letting market forces determine prices, it is known as price control.
How does price floor affect supply and demand?If the floor is greater than the economic price, the immediate result will be a supply surplus. As you can see from, a higher base price will lead to a higher quantity supplied. However, quantity demand will decrease because fewer people will be willing to pay the higher price. This will lead to a surplus of supply.
What happens to equilibrium supply and demand if a price floor is set below the equilibrium price?What happens to equilibrium supply and demand if a price floor is set below the equilibrium price? Nothing happens. Since the floor is below equilibrium, the market is still able to determine the quantity and price the same way it always does. 2.
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How does a price floor set above the equilibrium level affect quantity demanded and quantity supplied quizlet?
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