The equilibrium price in the market for lobster tails is $45 per pound. If a price of $50 is imposed on this market, this would be:

Question

Quizplus · Accepted Answer

A price of $50, being higher than the equilibrium price of $45, acts as a price floor. This means it sets a minimum price above the equilibrium, potentially leading to a surplus of lobster tails if suppliers produce more than consumers are willing to buy at that price.

The Equilibrium Price in the Market for Lobster Tails Is