If a Market Is Initially Operating Competitively and Then the Government

Multiple Choice

If a market is initially operating competitively and then the government imposes a price floor above the equilibrium price,

A) there will be more resources will be devoted to the production of this product
B) quantity demanded will rise
C) producer surplus will fall in the short run
D) imposition of the floor is probably a positive-sum game
E) consumer surplus will fall