Q2 Single choice Flag Which of the following is incorrect with regard to government intervention in market operations? A Government intervention may create a price different from the market price, thus causing either a surplus or a shortage. B A price ceiling is a price that is established above the equilibrium price, which causes a surplus to develop. C Price floors are minimum prices established by law, such as minimum wages and agricultural price supports. D Rationing limits the availability of certain goods to a specified level, which lowers demand and prices fora given supply. Correct answer