Multiple choice

The requirement is to identify the market feature that is likely to cause a surplus of a particular product. Which of the following market features is likely to cause a surplus of a particular product?

  1. A monopoly

  2. A price floor

  3. A price ceiling

  4. A perfect market

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Correct, because a price floor, if it is above the equilibrium price will cause excess production and a surplus.

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