Use the following table to answer the following questions.
Market for Corn

-If the price floor for corn is set at $5.00,what amount and type of disequilibrium will be present in the market for corn?
A) There will be no shortage or surplus.
B) There will be a shortage of 103,000.
C) There will be a surplus of 103,000.
D) There will be a surplus of 223,000.
E) There will be a surplus of 120,000.

Question

Use the following table to answer the following questions.
Market for Corn
 
-If the price floor for corn is set at $5.00,what amount and type of disequilibrium will be present in the market for corn?
A) There will be no shortage or surplus. 
B) There will be a shortage of 103,000. 
C) There will be a surplus of 103,000. 
D) There will be a surplus of 223,000. 
E) There will be a surplus of 120,000.

Quizplus · Accepted Answer

At a price floor of $5.00, the quantity supplied will be 550,000 bushels and the quantity demanded will be 447,000 bushels. This results in a surplus of 103,000 bushels.

Use the Following Table to Answer the Following Questions