Table 6-1

-Refer to Table 6-1.Suppose the government imposes a price floor of $5 on this market.What will be the size of the surplus in this market?

Question

Table 6-1
 
-Refer to Table 6-1.Suppose the government imposes a price floor of $5 on this market.What will be the size of the surplus in this market?

Quizplus · Accepted Answer

At a price floor of $5, the quantity demanded is 2 units and the quantity supplied is 10 units. This creates a surplus of 8 units, which is the difference between the quantity supplied (10) and the quantity demanded (2) at the price floor. Therefore, the correct answer is (C).

Table 6-1 -Refer to Table 6-1.Suppose the Government Imposes a Price Floor