Consider the following figure. Price $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 Supply

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Consider the following figure.
Price
$4.00
O
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
0
5
15
Quantity
A price floor set at $2.50 will result in
10
a surplus of 10 units.
a surplus of 5 units.
a shortage of 10 units.
20 25 30
a shortage of 5 units.
no change to the market outcomes.
Supply
Demand
35 40
Transcribed Image Text:Consider the following figure. Price $4.00 O $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 0 5 15 Quantity A price floor set at $2.50 will result in 10 a surplus of 10 units. a surplus of 5 units. a shortage of 10 units. 20 25 30 a shortage of 5 units. no change to the market outcomes. Supply Demand 35 40
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