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Refer to the above figure. If a price floor of $5 was set

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Refer to the above figure. If a price floor of $5 was set

Question 1.

Refer to the above figure. If a price floor of $5 was set

• the quantity demanded would be 100 units.

• there would be a shortage of 20 units.

• the quantity sold would be 60 units.

• the quantity sold would be 80 units.

Question 2.

Refer to the above figure. If a price floor of $5 was set

• there would be a shortage of 40 units.

• the quantity sold would be 80 units.

• there would be a shortage of 20 units.

• there would be a surplus of 40 units.

Textbook

Economics Today: The Micro View

Edition: 19^th

Author: Miller

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