Exhibit 4-10 Supply and Demand Data for Apricots In Exhibit 4-10, Assume That the Government Initially Sets a |

question 4

Multiple Choice

Exhibit 4-10 Supply and demand data for apricots $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Bushels demanded } \\\text { per month }\end{array} & \begin{array} { c } \text { Price per } \\\text { bushel }\end{array} & \begin{array} { c } \text { Bushels supplied } \\\text { per month }\end{array} \\\hline 50 & \$ 5 & 80 \\55 & 4 & 75 \\60 & 3 & 70 \\65 & 2 & 65 \\70 & 1 & 55 \\\hline\end{array}$$ In Exhibit 4-10, assume that the government initially sets a price floor of $4 for apricots, and then removes the $4 price floor. What effect will this price change have?

• A) The price of apricots will rise.
• B) The quantity of apricots demanded will fall.
• C) The quantity of apricots supplied will decline.
• D) Quantity supplied will continue to exceed quantity demanded.