Use the following table to answer the following questions.

-What is the surplus when the price floor is $0.75 in the market for public transportation?
A) 100,000
B) 86,000
C) 75,000
D) 116,000
E) 0 (zero)

Question

Use the following table to answer the following questions.
 
-What is the surplus when the price floor is $0.75 in the market for public transportation?
A) 100,000 
B) 86,000 
C) 75,000 
D) 116,000 
E) 0 (zero)

Quizplus · Accepted Answer

A price floor set below the equilibrium price does not create a surplus or a shortage because the market can still clear at the equilibrium price. Since $0.75 is presumably below the equilibrium price in this context, it would not affect the market outcome, resulting in no surplus.

Use the Following Table to Answer the Following Questions