Refer to the Accompanying Figure for the Next Two Questions

Multiple Choice

Refer to the accompanying figure for the next two questions.

-The accompanying figure describes the market for gasoline in a local community.If the government were to place a price floor at P₁,predict the resulting surplus or shortage.

A) There would be a shortage of 75,000 units.
B) There would be a surplus of 75,000 units.
C) There would be neither a shortage nor a surplus.
D) There would be a shortage of 150,000 units.
E) There would be a surplus of 150,000 units.