WAEC Economics 2016 Objective — Question 17
Question 17 of 50 from the West African Examinations Council (WAEC) Economics 2016 Objective paper, with the correct answer and a full explanation.
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17. A price floor results in (a) excess demand (b) excess supply (c) parallel market (d) hoarding of goods
- A. excess demand
- B. excess supplyCorrect
- C. parallel market
- D. hoarding of goods
Explanation
A price floor set above equilibrium price causes quantity supplied to exceed quantity demanded, resulting in excess supply.
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