A price floor above the equilibrium price will cause a larger surplus when demand is blank and supply is blank
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When a price floor is above the equilibrium price, a quantity supplied will exceed quantity demanded, so there will be a surplus. b Quantity demanded will exceed quantity supplied, so there will be a shortage. c The market will be in equilibrium. d This is a trick question because price floors are generally set below the equilibrium price.
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When a price ceiling is set below the equilibrium price, the quantity supplied ________ the quantity demanded and ________ exists. A. is greater than; a surplus B. is less than; a shortage C. is greater than; a shortage D. equals; an equilibrium E. is less than; a surplus
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