Which of the following statements regarding price floors is TRUE?
a. Price floors always benefit consumers and harm producers.
b. Price floors make markets more efficient, but they diminish profit levels.
c. Price floors result in shortages.
d. Price floors are intended to help certain people, but they have side effects that may harm others in predictable ways.
Ans: d. Price floors are intended to help certain people, but they have side effects that may harm others in predictable ways.
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