Card 4 / 47: All of the following statements about price floors are true except:
A) There will be a surplus of a commodity when a price floor is set above the equilibrium price.
B) The government may have to set up a system of storage to handle the excess supply when a price floor is set above the equilibrium price.
C) If the price floor is set below the equilibrium price, the intervention will have no effect on the market.
D) If the price floor is set below the equilibrium price, the price must be reduced.

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