Figure 4-1 Figure 4-1 illustrates the market for compact discs. If the government imposes a price floor of $25 for compact discs, which of the following will be true?
A) Consumers would wish to purchase 1,000 compact discs.
B) Producers would wish to sell 5,000 compact discs.
C) There would be a surplus of 4,000 compact discs.
D) All of the above are true.

Question

Figure 4-1  Figure 4-1 illustrates the market for compact discs. If the government imposes a price floor of $25 for compact discs, which of the following will be true?
A) Consumers would wish to purchase 1,000 compact discs. 
B) Producers would wish to sell 5,000 compact discs. 
C) There would be a surplus of 4,000 compact discs. 
D) All of the above are true.

Quizplus · Accepted Answer

The Answer of Figure 4-1  Figure 4-1 illustrates the market for compact discs. If the government imposes a price floor of $25 for compact discs, which of the following will be true?
A) Consumers would wish to purchase 1,000 compact discs. 
B) Producers would wish to sell 5,000 compact discs. 
C) There would be a surplus of 4,000 compact discs. 
D) All of the above are true.

Figure 4-1 Figure 4-1 Illustrates the Market for Compact