(Table: The Market for Kombucha) Use Table: The Market for Kombucha. The table shows the quantity demanded (Qd) and quantity supplied (Qs) of kombucha at various prices. (Table: The Market for Kombucha) Use Table: The Market for Kombucha. If the government imposes a price floor of $3 per bottle of kombucha, there will be:
A)a shortage of two bottles.
B)a shortage of three bottles.
C)a surplus of three bottles.
D)equilibrium in the market for kombucha.

Question

(Table: The Market for Kombucha) Use Table: The Market for Kombucha. The table shows the quantity demanded (Qd) and quantity supplied (Qs) of kombucha at various prices. (Table: The Market for Kombucha) Use Table: The Market for Kombucha. If the government imposes a price floor of $3 per bottle of kombucha, there will be: 
A)a shortage of two bottles. 
B)a shortage of three bottles. 
C)a surplus of three bottles. 
D)equilibrium in the market for kombucha.

Quizplus · Accepted Answer

A price floor is above the equilibrium price of $2.50, so it will create a surplus of kombucha. At a price of $3 per bottle, suppliers are willing to supply 11 bottles of kombucha, but consumers are only willing to buy 8 bottles. This creates a surplus of 3 bottles (Qs - Qd = 11 - 8 = 3).

(Table: the Market for Kombucha) Use Table: the Market for Kombucha