The Data Shows the Demand and Supply for Wheat

question 47

Multiple Choice

The data shows the demand and supply for wheat:
quantity of bushels per year (in million)

-Refer to the information above to answer this question.What would happen if the government were to establish a price floor of $16 per bushel of wheat?

• A)The price floor would stay at $16 and there would be no surplus in the market.
• B)The equilibrium price would rise to $16 and there would be shortage in the market.
• C)The quantity demanded would increase to 15 million bushels.
• D)There would be a surplus of 10 million bushels of wheat.
• E)The wheat buyers would have difficulty finding sufficient wheat in the market.

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