A Price Floor in the Cotton Market Will Result in an Excess

Multiple Choice

A price floor in the cotton market will result in an excess supply unless

A) the excess demand for cotton is reduced to zero
B) it is immediately followed by a shift to the right in the demand curve that reduces the excess supply to zero
C) the excess supply of cotton is equal to the excess demand for cotton at the floor price
D) the supply is immediately stimulated to reduce the excess demand that results from the excess supply
E) the quantity demanded shifts to the right