Graph 4-2

-According to Graph 4-2, if the government imposes a binding price floor in this market at a price of $8.00, the result will be a:

Name: Graph 4-2 -According to Graph 4-2, if the government imposes a binding price floor in this market at a price of $8.00, the result will be a:
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Question

Graph 4-2
 
-According to Graph 4-2, if the government imposes a binding price floor in this market at a price of $8.00, the result will be a:

Quizplus · Accepted Answer

At a price of $8.00, the quantity demanded is 60 units and the quantity supplied is 20 units, creating a surplus of 40 units (60-20=40). Therefore, the correct choice is B, a shortage of 40 units.

Graph 4-2 -According to Graph 4-2, If the Government Imposes a Binding