Answer:
C. price floors lower demand and increase supply
Explanation:
"Price floors" are set by the government in order to prevent the prices of goods from going lower. This is meant to protect the sellers; thus, when this happens, more sellers are inclined to produce more products. This means that the supply increases. Since the product price is sometimes set more than the equilibrium price, the consumers are drawn away from buying the good and find alternative goods instead. So, this decreases the demand and creates a surplus.
