If the state of Minnesota established a price floor in the market for pumpkins that was double the current market-clearing price,this would lead to an inefficient number of pumpkins sold in Minnesota.

Question

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If the state sets a price floor that is double the current market-clearing price, it is likely that the new price would be higher than what consumers are willing to pay, resulting in a surplus of pumpkins. This means that there will be more pumpkins supplied than demanded, leading to an inefficient number of pumpkins being sold.

If the State of Minnesota Established a Price Floor in the Market