Use the following to answer question:
Figure: The Market for English Textbooks
-(Figure: The Market for English Textbooks) Look at the figure The Market for English Textbooks. With a binding price floor at $90, the market outcome would be a _____ of _____ textbooks.
A) surplus; 45
B) surplus; 30
C) shortage; 45
D) shortage; 30

Question

Use the following to answer question:
Figure: The Market for English Textbooks 
-(Figure: The Market for English Textbooks) Look at the figure The Market for English Textbooks. With a binding price floor at $90, the market outcome would be a _____ of _____ textbooks.
A) surplus; 45 
B) surplus; 30 
C) shortage; 45 
D) shortage; 30

Quizplus · Accepted Answer

A binding price floor set above the equilibrium price leads to a surplus because the quantity supplied exceeds the quantity demanded. In this case, the surplus is 45 textbooks.

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