Suppose the Equilibrium Price of a Litre of Milk Is

Multiple Choice

Suppose the equilibrium price of a litre of milk is $4. If the government imposes a price floor of $5 per litre of milk, the

A) quantity supplied of milk exceeds the quantity demanded.
B) price of milk remains $4 per litre.
C) supply increases.
D) demand decreases.
E) quantity supplied of milk falls short of the quantity demanded.