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Exhibit 5-7 Refer to Exhibit 5-7

Question 137

Multiple Choice

Exhibit 5-7 Exhibit 5-7 Refer to Exhibit 5-7.If the government intervenes in the market for milk and sets a price floor of $3.50,the result is: A) a shortage of 500 gallons of milk. B) a surplus of 500 gallons of milk. C) that some consumers will not be able to buy milk who wish to purchase it at that price. D) both a. and c. are correct. Refer to Exhibit 5-7.If the government intervenes in the market for milk and sets a price floor of $3.50,the result is:

A) a shortage of 500 gallons of milk.
B) a surplus of 500 gallons of milk.
C) that some consumers will not be able to buy milk who wish to purchase it at that price.
D) both a. and c. are correct.

Correct Answer: