-In figure 3.8, what would be the result if a price floor is set which is $2 different from the equilibrium price and demand increased by 30?

Question

Quizplus · Accepted Answer

A price floor set $2 above the equilibrium price would result in a price that is higher than the equilibrium, leading to a surplus because the quantity supplied would exceed the quantity demanded. The increase in demand by 30 does not directly correlate with a surplus or shortage of 30 units, but the key effect of a price floor above equilibrium is to create a surplus.

-In Figure 3