Use the following figure to answer the questions that follow.

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

Question

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

Quizplus · Accepted Answer

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

Use the Following Figure to Answer the Questions That Follow