A surplus will result whenever the:
A)government imposes a price floor below the equilibrium price.
B)government imposes a price ceiling below the equilibrium price.
C)government imposes a price floor above the equilibrium price.
D)government imposes a price ceiling above the equilibrium price.
E)quantity demanded exceeds the quantity supplied.

Question

Quizplus · Accepted Answer

A surplus occurs when quantity supplied is greater than quantity demanded. A price floor above the equilibrium price will usually result in a surplus because it creates an excess supply that cannot be sold at the higher price. This excess supply is the surplus.

A Surplus Will Result Whenever The