If government legislates a price floor that is below the equilibrium price

A) a shortage will develop.
B) a black market will soon develop.
C) a surplus will develop.
D) market price and quantity sold will be unaffecteD.

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market equilibrium.

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded at a given price.