Question

In the diagram above, what will happen if the government sets the price for potatoes at point A?


A. There will be a shortage of potatoes.


B. There will be a surplus of potatoes.


C. The price of potatoes will rise to meet equilibrium.


D. The price of potatoes will fall to meet equilibrium.

Answer 1

Answer:

The correct answer is B, "There will be a surplus of potatoes."

Explanation:

I had a similar question on the test, just with Point B and a shortage of potatoes. Based on that, if the price were to be placed at point A, there would be a surplus. I hope this helps!