A legal minimum price is set which is below the equilibrium price. What will be the impact of this?
A、Excess of demand over supply
B、Excess of supply over demand
C、Nothing
A、Excess of demand over supply
B、Excess of supply over demand
C、Nothing
【参考答案及解析】
Rationale: Nothing. A minimum price (floor price) only leads to excess supply if it is set higher than the equilibrium price.
Rationale: Nothing. A minimum price (floor price) only leads to excess supply if it is set higher than the equilibrium price.