Figure 6-16

-Refer to Figure 6-16. A price floor set at $60 would create a surplus of 20 units.

Name: Figure 6-16 -Refer to Figure 6-16. A price floor set at $60 would create a surplus of 20 units.
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Question

Figure 6-16
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-Refer to Figure 6-16. A price floor set at $60 would create a surplus of 20 units.

Quizplus · Accepted Answer

A price floor set above the equilibrium price (which appears to be below $60 based on the context) would result in a quantity supplied that exceeds the quantity demanded, thus creating a surplus. Assuming the figure shows a surplus of 20 units at a price floor of $60, this statement is true.

Figure 6-16 ​

Figure 6-16