Figure 6-8

-Refer to Figure 6-8.If the government imposes a price floor of $5 on this market,then there will be

Name: Figure 6-8 -Refer to Figure 6-8.If the government imposes a price floor of $5 on this market,then there will be
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Figure 6-8
 
-Refer to Figure 6-8.If the government imposes a price floor of $5 on this market,then there will be

Quizplus · Accepted Answer

With a price floor of $5, the quantity demanded will decrease to 70 units while the quantity supplied will increase to 100 units. This creates a surplus of 30 units (100-70=30) of the good. Therefore, the correct answer is C.

Figure 6-8 -Refer to Figure 6-8.If the Government Imposes a Price Floor