Garbanzo Beans

-Consider the above table. Assuming the government imposes a price floor on garbanzo beans of $8, what would be the likely result?
A)a surplus of 2000 garbanzo beans
B)a shortage of 2000 garbanzo beans
C)No change, equilibrium would prevail.
D)The quantity demanded of garbanzo beans would fall to zero.

Question

Garbanzo Beans
 
-Consider the above table. Assuming the government imposes a price floor on garbanzo beans of $8, what would be the likely result?
A)a surplus of 2000 garbanzo beans 
B)a shortage of 2000 garbanzo beans 
C)No change, equilibrium would prevail. 
D)The quantity demanded of garbanzo beans would fall to zero.

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.

Garbanzo Beans -Consider the Above Table. Assuming the Government Imposes a Price