Exhibit 16.4

-Refer to Exhibit 16.4,which shows the market for a good.Suppose the government introduces a variety of policies that set floor prices for the good at $c.The quantity of the good demanded by the consumers at the price floor is _____

Question

Exhibit 16.4
 
-Refer to Exhibit 16.4,which shows the market for a good.Suppose the government introduces a variety of policies that set floor prices for the good at $c.The quantity of the good demanded by the consumers at the price floor is _____

Quizplus · Accepted Answer

A price floor set above the equilibrium price results in a surplus, where the quantity demanded is less than the quantity supplied. At the price floor of $c, the quantity demanded by consumers is j units, as indicated by the demand curve at that price level.

Exhibit 16.4 -Refer to Exhibit 16.4,which Shows the Market for a Good.Suppose