Answer to Question #229146 in Microeconomics for shrey

Question

over following options that they hope will get rid of the surplus while keeping the price floor - restricting supply, decreasing demand or purchasing the surplus at the floor price

Answer 1

Decreasing demand

When the demand curve shifts to the left, producer surplus decreases.

Purchasing the surplus at the floor price

If a surplus exists, price must fall in order to stimulate additional quantity demanded and decrease the quantity supplied until the surplus is gotten rid of.

Restricting supply.

Restricting the quantity supplied to the market will help in lowering the possibility of having a producer surplus in the market.