If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause ____________
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Correct Answer: Option A
Explanation:
When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.
When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.