88 econ class

Supply $1.60 Price 1.00 SO Demand 130 200 280 Quantity Consider the above graph. If the government imposed a price floor of $1.60 in this market, would there be a shortage of a surplus? Of how much? O a) There would be neither a shortage or surplus because the 50 floor would be below equilibrium. O b) There would be a shortage of 70 units. O d There would be a surplus of 160 units. ( d) There would be a surplus of 70 units