Suppose that a $5.50 price floor is imposed on a corn market whose equilibrium price was $4.50 per bushel. Which of the following will happen?
a. There will be an excess demand of corn at $5.50.
b. The profits of all corn farmers will increase by $1 per bushel.
c. There will be an excess supply of corn at $5.50.
d. The equilibrium price of corn will fall below $4.50 per bushel.
e. The excess supply at $5.50 will fall to zero as the equilibrium price increases to $5.50 .
C
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