(Table: Quantity Supplied and Quantity Demanded in the Market for Magazine Subscriptions) Use Table: Quantity Supplied and Quantity Demanded in the Market for Magazine Subscriptions. A price floor of _____ would produce surplus in this market.
A)$5
B)$10
C)$15
D)$20

Question

(Table: Quantity Supplied and Quantity Demanded in the Market for Magazine Subscriptions) Use Table: Quantity Supplied and Quantity Demanded in the Market for Magazine Subscriptions. A price floor of _____ would produce surplus in this market. 
A)$5 
B)$10 
C)$15 
D)$20

Quizplus · Accepted Answer

At a price floor of $20, the quantity supplied (25) exceeds the quantity demanded (10), creating a surplus. At a lower price floor, such as $15 or $10, the quantity supplied and quantity demanded are equal, indicating a market equilibrium. A price floor of $5 results in a shortage, where the quantity demanded exceeds the quantity supplied.