Assume a Price Floor Is Imposed in the Market for Milk

Multiple Choice

Assume a price floor is imposed in the market for milk at the current equilibrium price, and that a price ceiling is imposed in the market for natural gas at the current equilibrium price. What will an increase in demand for both milk and natural gas create?

A) Shortages in both the milk and natural gas markets.
B) Surpluses in both the milk and natural gas markets.
C) A surplus in the milk market and a shortage in the natural gas market.
D) A shortage in the natural gas market and increase the quantity traded in the milk market.