D Question 9 1 pts Suppose the equilibrium price of oranges

D Question 9 1 pts Suppose the equilibrium price of oranges is $0.79 per pound, but the government takes steps to prevent price from dropping below $0.93 per pound. The likely result will be a: O higher equilibrium price for oranges as the demand curve shifts to the right O higher equilibrium price for oranges as the supply curve shifts to the left O surplus of oranges as the price floor keeps the market from reaching equilibrium O shortage of oranges as the price floor keeps the market from reaching equilibrium.

Solution

Option C.

The binding price floor above the market equilibrium price of oranges will result in surplus of oranges as quantity supplied will exceed the quantity demanded at a higher price as compared to market price of oranges.