The figure to the right illustrates the market for apples in which the goverment has imposed a price floor of $14 per crate.
How many crates of apples will be sold after the price floor has been imposed? million crates of apples per year. (Enter your response as an integer.)
Will there be a shortage or a surplus _ ? If there is a shortage or a surplus, how large will it be?
There will be a _ of _ million crates of apples per year. (Enter your response as an integer).
Will apple producers benefit from the price floor?
A) Apple producers who are able to sell their apples at the $14 price per crate will benefit.
B) Apple producers who are not able to sell their apples will not benefit.
C) Total revenue for apple producers as a group will decrease from $220 million to $196 million.
D) Both a and b.