Macroeconomics 11th Edition by Stephen Slavin

Exercise 46

Before you get started, you'll find it's much easier to answer many of these questions by first sketching a graph of a supply and demand curve. In fact, that graph will help you answer the first four questions.
Circle the letter that corresponds to the best answer.
If the equilibrium price of corn is $3 a bushel, and the government imposes a floor of $4 a bushel, the price of corn will _____.
a) increase to $4
b) remain at $3
c) rise to about $3.50
d) be impossible to determine