Assume a Price Floor Is Imposed in the Wheat Market

Multiple Choice

Assume a price floor is imposed in the wheat market at the equilibrium price, and that a price ceiling is imposed in the gasoline market at the equilibrium price. What will an increase in supply in both the wheat and gasoline markets create?

A) A surplus in the wheat market and an increase the quantity of gasoline traded.
B) A surplus in the wheat market and a shortage in the gasoline market.
C) Shortages in both the wheat and gasoline markets.
D) Surpluses in both the wheat and gasoline markets.