If a price floor is set at \$80 in a market where the equilibrium price is \$60, what is the likely outcome?

• A. No change, as the market will adjust to the new price.
• B. A decrease in the equilibrium price.
• C. A surplus, as the quantity supplied will exceed the quantity demanded.
• D. A shortage, as the quantity demanded will exceed the quantity supplied.

Answer: (C)