If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause
-
surplus in the market
- shortage in the in market
- black market to come into operation
- rationing to be introduced
The correct answer is: A
Explanation
When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.