Use the following to answer question:
-(Table: Quantity Supplied and Quantity Demanded)Use Table: Quantity Supplied and Quantity Demanded.A price floor equal to _____ would produce excess supply in this market.
A)$5
B)$10
C)$15
D)$20

Question

Use the following to answer question: 
-(Table: Quantity Supplied and Quantity Demanded)Use Table: Quantity Supplied and Quantity Demanded.A price floor equal to _____ would produce excess supply in this market.
A)$5 
B)$10 
C)$15 
D)$20

Quizplus · Accepted Answer

A price floor set above the equilibrium price will result in excess supply. If the price floor is $20, it is likely above the equilibrium price, causing quantity supplied to exceed quantity demanded, leading to excess supply.

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