The government has imposed a price control for many agricultural products in an effort to support farmers. In the case of price floor P₂ in the accompanying figure, how much of a disequilibrium in quantity exists? A) a shortage of 30,000 units B) a surplus of 120,000 units C) 30,000 units D) a surplus of 30,000 units E) an excess of $3

Question

Quizplus · Accepted Answer

The price floor creates a surplus quantity of 30,000 units because the quantity supplied is greater than the quantity demanded at the minimum price.

The Government Has Imposed a Price Control for Many Agricultural