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Suppose the market supply and market demand for a product are given by   = 2 + Qs  and   = 14

− Qd, respectively (where P is price (in dollars), Qs is quantity supplied and Qd is quantity demanded). What will be the effect on the market if the government sets a price floor of $7?


A. It creates a shortage of 4 units

B. It creates a shortage of 2 units

C. It creates a surplus of 4 units

D. It will have no effect on the market

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