Use the following to answer question:
-(Table: The Market for Soda) Look at the table The Market for Soda. If the government imposes a price floor of $1 per can of soda, there will be:
A) a shortage of two cans.
B) a shortage of three cans.
C) a surplus of three cans.
D) equilibrium in the market for soda.

Question

Use the following to answer question: 
-(Table: The Market for Soda) Look at the table The Market for Soda. If the government imposes a price floor of $1 per can of soda, there will be:
A) a shortage of two cans. 
B) a shortage of three cans. 
C) a surplus of three cans. 
D) equilibrium in the market for soda.

Quizplus · Accepted Answer

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

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