WAEC - Economics (2016 - No. 15)
A price floor results in
excess demand
excess supply
parallel market
hoarding of goods
Wyjaśnienie
A price floor is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low. When a market reaches a price floor, it results in an excess supply because quantity supplied at the price floor exceeds the quantity demanded.