Answer to Question #268661 in Macroeconomics for Diya

Question

 If the government imposes a $20 floor price for this good or service, would a surplus or deficit situation ensue on this market? If yes, what is the dollar value of this surplus or deficit? 

Answer 1

A surplus would ensue since the quantity supplied will exceed quantity demanded.

Let $\$x$ be the dollar value before the surplus; after the surplus, the dollar will have a value of

$\$(x+20)$