-Refer to the above figure. A surplus occurs if the government imposes
A) a price floor at $60.
B) a price floor at $20.
C) a price ceiling at $60.
D) a price ceiling at $20.

Name: -Refer to the above figure. A surplus occurs if the government imposes A) a price floor at $60. B) a price floor at $20. C) a price ceiling at $60. D) a price ceiling at $20.
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Question

-Refer to the above figure. A surplus occurs if the government imposes
A) a price floor at $60. 
B) a price floor at $20. 
C) a price ceiling at $60. 
D) a price ceiling at $20.

Quizplus · Accepted Answer

A surplus occurs when the price is set above the equilibrium price, which is the case with a price floor at $60, leading to excess supply.

-Refer to the Above Figure