If A Price Floor Is Set Above The Equilibrium Price In A Market
If A Price Floor Is Set Above The Equilibrium Price In A Market. Result in a surplus of the good. It must be set below the equilibrium price to have any effect.
In other words, the firm is able to sell at a higher price. More of the product is produced than is consumed and there is a surplus. By chris drew (phd) / january 26, 2023.