Business
mohamedraafat
2016-04-15 10:42:06
When a price floor that has an impact is imposed, the quantity?
ANSWERS
Milfort95
2016-04-15 13:07:41

When a price floor that has an impact is imposed, the quantity DEMANDED WILL DECREASE AND THE QUANTITY SUPPLY WILL INCREASE. Price floor is often imposed by the government in order to prevent a price from falling below a certain point. When a price floor is placed above the equilibrium price, quantity supplied will be more than quantity demanded and there will be excess supply.

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