(Figure: Price Floor) Refer to the graph. Assume a price floor is implemented at $35. Using the graph answer the following questions:
(a) How many units are buyers willing to buy after the institution of the price floor?
(b) How many units are sellers willing to sell after the institution of the price floor?
(c) After the institution of the price floor, how many units are actually sold in this market?
(d) Does the price floor cause a shortage or a surplus? How many units is this shortage or surplus?

Question

(Figure: Price Floor) Refer to the graph. Assume a price floor is implemented at $35. Using the graph answer the following questions:
  (a) How many units are buyers willing to buy after the institution of the price floor?
(b) How many units are sellers willing to sell after the institution of the price floor?
(c) After the institution of the price floor, how many units are actually sold in this market?
(d) Does the price floor cause a shortage or a surplus? How many units is this shortage or surplus?

Quizplus · Accepted Answer

The Answer of (Figure: Price Floor) Refer to the graph. Assume a price floor is implemented at $35. Using the graph answer the following questions:
  (a) How many units are buyers willing to buy after the institution of the price floor?
(b) How many units are sellers willing to sell after the institution of the price floor?
(c) After the institution of the price floor, how many units are actually sold in this market?
(d) Does the price floor cause a shortage or a surplus? How many units is this shortage or surplus?

(Figure: Price Floor) Refer to the Graph