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MMLU / Which of the following is true about a price floor?

Problem

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question

Which of the following is true about a price floor?

choices

  1. It is used to correct government policy.
  2. It is used when the equilibrium price is too high.
  3. It will be located above the equilibrium price.
  4. It will be located below the equilibrium price.

subject

high_school_microeconomics

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