The data shows the demand and supply for sugar:
quantity of kilograms (in thousand per week)

-Refer to the information above to answer this question.What would happen if the government were to establish an effective price floor of $3 per kilogram of sugar?

Question

The data shows the demand and supply for sugar:
quantity of kilograms (in thousand per week)
 
-Refer to the information above to answer this question.What would happen if the government were to establish an effective price floor of $3 per kilogram of sugar?

Quizplus · Accepted Answer

A price floor set above the equilibrium price causes a surplus because the quantity supplied exceeds the quantity demanded. In this scenario, setting a price floor at $3 per kilogram of sugar would result in a surplus, as producers would be willing to supply more sugar than consumers are willing to buy at that price.

The Data Shows the Demand and Supply for Sugar