Use the following figure to answer the following questions.

-If the government imposes a price floor on wheat at $5,predict the amount of disequilibrium.
A) There will be a surplus of 3,000,000.
B) There will be a shortage of 3,000,000.
C) There will be neither a shortage nor a surplus.
D) There will be a surplus of 2,000,000.
E) There will be a shortage of 2,000,000.

Question

Use the following figure to answer the following questions.
 
-If the government imposes a price floor on wheat at $5,predict the amount of disequilibrium.
A) There will be a surplus of 3,000,000. 
B) There will be a shortage of 3,000,000. 
C) There will be neither a shortage nor a surplus. 
D) There will be a surplus of 2,000,000. 
E) There will be a shortage of 2,000,000.

Quizplus · Accepted Answer

A price floor set above the equilibrium price causes a surplus because the quantity supplied exceeds the quantity demanded at that price.

Use the Following Figure to Answer the Following Questions