If the government sets a minimum price above the equilibrium price for soybeans,which of the following statements will be correct?

Question

Quizplus · Accepted Answer

Setting a minimum price above the equilibrium price for soybeans will result in excess supply because producers will be willing to supply more at the higher price, but consumers will not be willing to buy as much at that price, leading to a surplus.

If the Government Sets a Minimum Price Above the Equilibrium