WAEC - Economics (2020 - No. 16)
If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause
surplus in the market
shortage in the in market
black market to come into operation
rationing to be introduced
Explicaţie
When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.