Use the following to answer question:
-(Table: The Market for Soda)Use Table: The Market for Soda.If the government imposes a price floor of $1 per can of soda,there will be:
A)a shortage of two cans.
B)a shortage of three cans.
C)a surplus of three cans.
D)equilibrium in the market for soda.

Question

Use the following to answer question: 
-(Table: The Market for Soda)Use Table: The Market for Soda.If the government imposes a price floor of $1 per can of soda,there will be:
A)a shortage of two cans. 
B)a shortage of three cans. 
C)a surplus of three cans. 
D)equilibrium in the market for soda.

Quizplus · Accepted Answer

A price floor set above the equilibrium price creates a surplus because it increases the price above what was originally agreed upon by buyers and sellers, leading to less quantity demanded and more quantity supplied than at the equilibrium.

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