Abelow-market loan (e.g., from an employer to an employee) is a common example of

This is true. With a below-market loan, the recipient has received a fringe benefit and would be considered to have earned imputed income. If the amount of the loan was over $50,000, then the recipient would have to claim this income on their next income tax statement as such and pay the appropriate taxes on it.

Statement A, B, C

Explanation:

1. Floor price is always established above equilibrium price, thus most of the consumers will not be able to purchase milk due to high price, leading to low demand. Hence statement B is a negative impact.

2. As the price will be above equilibrium price, suppliers will overproduce resulting in surplus of milk. Hence, statement C is a negative impact.

3. Due to overproduction suppliers may indulge in illegal activities to cope with unsold units. Hence, statement A is a negative impact.