-Refer to the graph above to answer this question.What would be the result if an effective price floor is set which is $2 different from the equilibrium price and demand increased by 30?

Question

Quizplus · Accepted Answer

An effective 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 change the fact that the price floor causes a surplus, not a shortage.

-Refer to the Graph Above to Answer This Question