-Refer to the graph above to answer this question.Suppose that the government imposes a price floor of $6.What quantity will the government have to buy?

Question

Quizplus · Accepted Answer

A price floor set above the equilibrium price creates a surplus because the quantity supplied exceeds the quantity demanded. The government must purchase the surplus to maintain the price floor. The quantity the government needs to buy is the difference between the quantity supplied and the quantity demanded at the price floor.

-Refer to the Graph Above to Answer This Question