Question

What are the effect of price floor on the market of a good?

Answer 1

Consumers now have to pay a higher price for that good, hence demand decreases (law of demand).

Suppliers now know that they would be getting a guaranteed higher price for their good, so they increase the supply.

Since supply exceeds demand, the is condition is called excess demand or “surplus”.

Also, there is some dead weight loss because efficient trades in the market decrease.

MARK BRAINLIEST

Answer 2

$\mathcal{\red{\huge{Heya\:mate\:!!}}}$

$\mathtt{Here\:is\:ur\:@nswer}$⎇

✶⊶⊷⊶⊷⊷⊶⊷ ❍⊷⊶⊷⊶⊷⊶⊷✶

$\textsf{\pink{Q.}}$ What are the effect of price floor on the market of a good?

$\textsf{\pink{Ans.}}$ When government imposes lower limit on a price that may be charged for particular good or service, it is called Minimum Price Ceiling, e.g. price, the producers are willing to supply P1B or OQ2, while consumer's demand only P1A. unable to sell, all the want to sell, the producers may try to illegally sell below the minimum price.

✶⊶⊷⊶⊷⊷⊶⊷ ❍⊷⊶⊷⊶⊷⊶⊷✶

$\mathcal{\red{\huge {Hope\:it\:helps}}}$✯✯✯

⍖━━━━━━━━━━⍖

$\mathbb{\huge{A-KASH}}$