Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: The Market for Butter
-(Figure: The Market for Butter) Look at the figure The Market for Butter. If a government price floor at $1.20 is imposed on this market, an inefficiency will result in the form of a _____ of _____ million pounds of butter.

A) surplus; 4.5
B) shortage; 4.5
C) surplus; 1.5
D) shortage; 1.5