-Consider the above table. Assuming the government imposes a price floor on strawberries of $8 per pound, what would be the likely result?
A) a surplus of 2,000 pounds of strawberries
B) a shortage of 2,000 pounds of strawberries
C) No change, equilibrium would prevail.
D) The quantity demanded of strawberries would fall to zero.

Question

-Consider the above table. Assuming the government imposes a price floor on strawberries of $8 per pound, what would be the likely result?
A) a surplus of 2,000 pounds of strawberries 
B) a shortage of 2,000 pounds of strawberries 
C) No change, equilibrium would prevail. 
D) The quantity demanded of strawberries would fall to zero.

Quizplus · Accepted Answer

A price floor set above the equilibrium price (which is not specified in the question but implied to be below $8) would result in a surplus because the price floor would increase the price above the equilibrium, leading to less quantity demanded and more quantity supplied than at the equilibrium price.

-Consider the Above Table