quires respondus lockdown browser refer to figure 6-2. if the government imposes a binding price floor of…

quires respondus lockdown browser refer to figure 6-2. if the government imposes a binding price floor of $12 in this market, what is the result? a shortage of 30 units a surplus of 20 units a shortage of 40 units a surplus of 30 units

quires respondus lockdown browser refer to figure 6-2. if the government imposes a binding price floor of $12 in this market, what is the result? a shortage of 30 units a surplus of 20 units a shortage of 40 units a surplus of 30 units

Answer

Explanation:

Step1: Identify quantity supplied and demanded at $12

At price - floor of $12, quantity supplied is 70 units and quantity demanded is 40 units.

Step2: Calculate the difference

Surplus = Quantity supplied - Quantity demanded. So, Surplus = 70 - 40 = 30 units.

Answer:

A surplus of 30 units