Exhibit 5-1

-Refer to Exhibit 5-1. A price floor set at $40 would create a surplus of 30 units.

Name: Exhibit 5-1 -Refer to Exhibit 5-1. A price floor set at $40 would create a surplus of 30 units.
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Question

Exhibit 5-1
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-Refer to Exhibit 5-1. A price floor set at $40 would create a surplus of 30 units.

Quizplus · Accepted Answer

This can be observed by looking at the intersection of the demand and supply curves at a price of $40, and then noting the excess supply (i.e. surplus) at that price point.

Exhibit 5-1 ​ ​

Exhibit 5-1