Suppose the price of wheat is set at $5 a bushel and not allowed to decrease. This price is above the equilibrium price, which causes a surplus of wheat in the marketplace. This situation describes a _____.

price floor
price ceiling

Question

Suppose the price of wheat is set at $5 a bushel and not allowed to decrease. This price is above the equilibrium price, which causes a surplus of wheat in the marketplace. This situation describes a _____.

price floor
price ceiling

anonymous · Answer

The second one

xmoses1 · Answer

Actually price floor if it cant decrease

anonymous · Answer

price ceiling because it forces them to pay a market price ... Price ceiling is a maximum price set below the market

anonymous · Answer

But hey I might be wrong on this on @tlove1023

anonymous · Answer

one*

xmoses1 · Answer

Actually, that doe make more sense. I change my answer. I think it is price ceiling ^^