In a market economy, which of the following would most likely cause a prolonged grain surplus?
A) a decrease in the demand for grain
B) an increase in the supply of grain
C) imposition of a price floor above the equilibrium price of grain
D) imposition of a price ceiling below the equilibrium price of grain

Question

Quizplus · Accepted Answer

A price floor set above the equilibrium price prevents the market from clearing, leading to a surplus as producers supply more grain than consumers are willing to buy at that price.

In a Market Economy, Which of the Following Would Most