A government will create a surplus in a market when it sets a price

Question

Business

Aidan Gibson

10 May, 05:49

A government will create a surplus in a market when it sets a price

+3

Answers (1)

Know the Answer?

Ethan Faulkner · Answer 1

A government will create a surplus in a market when it: Sets a price floor above the equilibrium price.

The equilibrium charge is the marketplace charge wherein the number of goods supplied is identical to the size of goods demanded. that is the factor at which the demand and supply curves inside the marketplace intersect.