Figure 6-4
-Refer to Figure 6-4.A government-imposed price floor of $12 in this market results in

Question

Figure 6-4 
-Refer to Figure 6-4.A government-imposed price floor of $12 in this market results in

Quizplus · Accepted Answer

A price floor set above the equilibrium price results in a surplus because the quantity supplied exceeds the quantity demanded. If the price floor is $12 and it leads to a surplus of 4 units, it means that at this price, suppliers are willing to supply more than consumers are willing to buy, resulting in excess supply.

Figure 6-4 -Refer to Figure 6-4.A Government-Imposed Price Floor of $12 in of $12