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Question
Use the following table to answer the following questions.
Market for Corn
| Year | Price | Quantity Demanded | Quantity Supplied |
| 1 | $2.00 | 200,000 | 100,000 |
| 2 | $2.50 | 186,000 | 125,000 |
| 3 | $3.00 | 184,000 | 141,000 |
| 4 | $3.50 | 169,000 | 169,000 |
| 5 | $4.00 | 161,000 | 181,000 |
| 6 | $4.50 | 155,000 | 200,000 |
| 7 | $5.00 | 120,000 | 223,000 |
If a price floor is imposed at $15 per unit when the equilibrium market price is $12, there will be
a. no surplus or shortage.
b. a surplus.
c. a shortage.
d. a downward pressure on prices.
e. an upward pressure on prices.
Answer
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