The horizontal axis is labeled quantity. The vertical axis is labeled price. A rising curve labeled S and a falling curve labeled D are plotted. The point of intersection of the S and D curves corresponds to quantity E and price B. A point is shown on the S curve corresponding to price C which is higher than B. A point is shown on the D curve corresponding to price A which is less than B.

Refer to the diagram. An effective government-set price floor is best illustrated by

Multiple Choice

• quantity E.

• price A.

• price C.

• price B.

Transcribed Image Text:

Price CO A 0 E Quantity S D Price CO A 0 E Quantity S D

Answer rating: 100% (QA)

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