5. Consumer and Producer Surplus; Price Ceilings and Price Floors

5. Consumer and Producer Surplus; Price Ceilings and Price Floors / Quantitative Analysis of Price Ceilings and Floors: Finding Points / Problem 11

Problem 11

What happens to the quantity supplied when a price floor is set above the equilibrium price?

It becomes zero.

It decreases.

It remains the same.

It increases.