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Question
The government has imposed a price control for many agricultural products in an effort to support farmers. In the case of price floor P2 in the accompanying figure, how much of a disequilibrium in quantity exists?
a. a shortage of 30,000 units
b. a surplus of 120,000 units
c. 30,000 units
d. a surplus of 30,000 units
e. an excess of $3
Answer
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