-Refer to the diagram above.Suppose that a price floor is imposed on the market at a price of $8.The extent of the ______ is ______ units.
A) surplus;14
B) shortage;14
C) surplus;6
D) shortage;6
E) surplus;8

Question

-Refer to the diagram above.Suppose that a price floor is imposed on the market at a price of $8.The extent of the ______ is ______ units.
A) surplus;14 
B) shortage;14 
C) surplus;6 
D) shortage;6 
E) surplus;8

Quizplus · Accepted Answer

A price floor set above the equilibrium price creates a surplus. If the price floor is at $8 and the surplus is 14 units, it means that at this price, the quantity supplied exceeds the quantity demanded by 14 units.

-Refer to the Diagram Above