TABLE 4-4 -Refer to Table 4-4. If the Government Intervenes in the Government

Multiple Choice

TABLE 4-4

-Refer to Table 4-4. If the government intervenes in the market for milk and sets a price floor of $1.20, what will be the result?

A) There will be a surplus of 500 litres of milk.
B) Some consumers will pay $1.00 per litre of milk.
C) Some consumers will not be able to buy milk who wish to purchase it at that price.
D) There will be a shortage of 500 litres of milk.