Draw a supply and demand curve diagram with a price floor above the equilibrium price, and indicate the quantity supplied and quantity demanded at that price and the resulting surplus.
a. What happens to the quantity supplied, the quantity demanded, and the surplus if the price floor is raised? If it is lowered?
b. What happens to the quantity supplied, the quantity demanded, and the surplus if, for a given price floor, the demand curve shifts to the right?
c. What happens to the quantity supplied, the quantity demanded, and the surplus if, for a given price floor, the supply curve shifts to the right?