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Question 65

Multiple Choice

  -Refer to the graph above to answer this question.Suppose that the government imposes a price floor of $120 and subsequently demand increases by 200.What would be the result? A) Price would increase to $140. B) There would be a surplus of 200 units. C) There would be a shortage of 100 units. D) There would be a shortage of 200 units. E) The product would be underpriced.
-Refer to the graph above to answer this question.Suppose that the government imposes a price floor of $120 and subsequently demand increases by 200.What would be the result?


A) Price would increase to $140.
B) There would be a surplus of 200 units.
C) There would be a shortage of 100 units.
D) There would be a shortage of 200 units.
E) The product would be underpriced.

Correct Answer:

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