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🏠 Home › MCQs › Business and Economics › Question

If a government sets a price floor above the market equilibrium price, what is the most likely economic outcome?

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By TheQuizWire

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Source Economics Knowledge Database

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Fact Checked

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Published 18 May 2026

A. A persistent market shortage

B. A persistent market surplus

C. An increase in consumer surplus

D. A shift in the demand curve to the right

💡 Explanation:

A price floor above equilibrium prevents the price from falling to the clearing level, resulting in quantity supplied exceeding quantity demanded.

📚 Topics: Business and Economics Economics

🎯 Exams: CSS NTS PMS UK_CS

🏷️ Tags: Market Equilibrium Microeconomics Price Controls

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