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.An increase in supply in both the wheat and gasoline markets will create:

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