Say that the equilibrium price of natural gas would be $5 per thousand cubic feet, but there is a price floor imposed at $7 per thousand cubic feet.That price floor is then lowered to $5 per thousand cubic feet.As a result,
A)the shortage of natural gas will get worse.
B)the shortage of natural gas will get less severe.
C)the surplus of natural gas will get worse.
D)the surplus of natural gas will get less severe.
E)the surplus of natural gas will be eliminated.

Question

Quizplus · Accepted Answer

Lowering the price floor to the equilibrium price eliminates the surplus, as the market can now clear at the equilibrium price.

Say That the Equilibrium Price of Natural Gas Would Be