Which of the following is evidence of a surplus of bananas?
A) The price of bananas is lowered in order to increase sales.
B) Firms raise the price of bananas.
C) The equilibrium price of bananas rises due to an increase in demand.
D) The quantity of bananas demanded is greater than the quantity supplied.
Question 2
Refer to Figure 4-11. What is the value of the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor?
A) 1,200 B) 1,500 C) 1,800 D) 3,000
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