The government has imposed a price control for many agricultural products in an effort to support farmers. In the case of price floor P₂ in the accompanying figure, how much of a disequilibrium in quantity exists? A) a shortage of 30,000 units B) a surplus of 120,000 units C) 30,000 units D) a surplus of 30,000 units E) an excess of $3

Question

Quizplus · Accepted Answer

At the price floor P₂, the quantity demanded is lower than the quantity supplied, resulting in a surplus of 30,000 units. Therefore, the correct choice is D.

The Government Has Imposed a Price Control for Many Agricultural