The following graph shows the market for apples. Assume that the government has imposed a price floor of $10 per crate.

a. How many crates of apples will be sold to consumers after the price floor has been imposed?
b. Will there be a shortage or a surplus of apples? If there is a shortage or a surplus, how large will it be?
c. Will apple producers benefit from the price floor? If so, explain how they will benefit.

Transcribed Image Text:

Price (dollars per crate) Supply $10 Demand Quantity (millions of crates per year) 28 30 34