Rupert is a low-skilled worker who washes dishes in a local restaurant. A proposal to increase the minimum wage may worry him if he knows that price

a) floors tend to create shortages b) ceiling tend to create shortages c) floors tend to create surpluses d) ceiling tend to create surpluses

Question is asking a proposal to increase the minimum wage would make price

either floor or ceiling

to create shortages or surpluses

price ceiling is a legal maximum on the price at which a good can be sold

price floor is a legal minimum on the price at which a good can be sold.

a) floors tend to create shortages

this is wrong because floors create surplus

b) ceiling tend to create shortages It is correct.

But the question is asking a proposal to increase the minimum wage would make price either floor or ceiling to create shortages or surpluses

price ceiling is a legal maximum price is it’s wrong

c) floors tend to create surpluses floors create surpluses. It’s correct. The question is asking a proposal to

increase the minimum wage would make price either floor or ceiling to create shortages or surpluses

price floor is a legal minimum price This is the right answer

d) ceiling tend to create surpluses

ceiling create shortages.

So it’s incorrect