Figure 6-6
-Refer to Figure 6-6.If the government imposes a price floor of $10 on this market,then there will be

Question

Figure 6-6 
-Refer to Figure 6-6.If the government imposes a price floor of $10 on this market,then there will be

Quizplus · Accepted Answer

A price floor is a government-imposed limit on how low a price can be charged for a good or service. In this case, the price floor of $10 is above the equilibrium price of $8, so there will be a surplus of goods. At $10, suppliers will produce 60 units, but consumers will only demand 30 units at this higher price. Therefore, there will be a surplus of 30 units (60-30=30).

Figure 6-6 -Refer to Figure 6-6.If the Government Imposes a Price Floor