Use the following to answer question 70:
-(Table: The Market for Pop)Use Table: The Market for Pop.If the government imposes a price floor of $1 per can of pop,there will be:
A) a shortage of two cans.
B) a shortage of three cans.
C) a surplus of three cans.
D) equilibrium in the market for soda.

Question

Use the following to answer question 70: 
-(Table: The Market for Pop)Use Table: The Market for Pop.If the government imposes a price floor of $1 per can of pop,there will be:
A) a shortage of two cans. 
B) a shortage of three cans. 
C) a surplus of three cans. 
D) equilibrium in the market for soda.

Quizplus · Accepted Answer

A price floor set above the equilibrium price leads to a surplus because the quantity supplied exceeds the quantity demanded at that price.

Use the Following to Answer Question 70