The Table Given Below Reports the Quantity Demanded and Supplied

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market.Table 3.5

-Which of the following is true of a price floor?

A) A price floor allows supply and demand to function effectively.
B) A price floor is set such that the price is not allowed to increase above a certain level.
C) A price floor is beneficial to buyers in a market.
D) A price floor usually creates a shortage of a good in a market.
E) A price floor is set such that the price is not allowed to decrease below a certain level.

Correct Answer:

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