Use the following to answer question :
-(Table: Quantity Supplied and Quantity Demanded)Use Table: Quantity Supplied and Quantity Demanded.The government institutes a price floor,and as a result,too many resources are allocated for the production of the good.Given this,which dollar amount is a possible value of the price floor 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.The government institutes a price floor,and as a result,too many resources are allocated for the production of the good.Given this,which dollar amount is a possible value of the price floor in this market?
A) $5 
B) $10 
C) $15 
D) $20

Quizplus · Accepted Answer

A price floor set above the equilibrium price leads to a surplus, meaning too many resources are allocated to production. $20 is likely above the equilibrium price, causing this surplus.

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