In the following graph, QS and QD represent the supply and the demand curves respectively. Refer to the graph to answer the question.
If the minimum price of the good is set at £2, which of the following is likely to happen?
A) The minimum price will not affect quantity demanded or supplied as it is set above the equilibrium price.
B) The total quantity of the good bought and sold in the market will be equal to 200 units.
C) There will be a surplus of 200 units in the market.
D) The imports of the good will increase.
Correct Answer:
Verified
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