https://file.aiquickdraw.com/mathbot/file/1729474925155w1t1wdvu.jpg

The image you provided shows a supply and demand graph with a price floor in place. Here's a breakdown of the key elements:

1. **Equilibrium price**: The intersection of the supply and demand curves gives the equilibrium price. In this case, the graph shows that without a price floor, the equilibrium price is **$2.50 per bushel**, which you have already filled in.

2. **Price floor**: The horizontal green line on the graph represents the price floor. The price floor is set at **$4 per bushel**, which is above the equilibrium price.

3. **Surplus**: A price floor above the equilibrium price leads to a surplus because at the price of $4 per bushel, the quantity supplied (about 2 billion bushels) exceeds the quantity demanded (about 1 billion bushels). The difference between the quantity supplied and the quantity demanded at this price is the surplus.

- **Quantity supplied**: 2 billion bushels.
- **Quantity demanded**: 1 billion bushels.
- **Surplus**: The surplus is the difference, which is **2 billion - 1 billion = 1 billion bushels**.

Would you like further clarification or details on any aspect?

### Relative questions:
1. How does a price floor affect consumer and producer surplus?
2. What happens to the market when a price floor is set below the equilibrium price?
3. How do deadweight loss and surplus relate to each other in this scenario?
4. What are other examples of price controls and their effects on markets?
5. How could the government handle the surplus created by the price floor?

### Tip:
Price floors can lead to inefficiencies in the market, like surpluses, which often require intervention to resolve.

Without the price floor, what would the equilibrium price per bushel be? With the price floor in place, what is the amount of the surplus?

Explore the concept of price floors in economics with this detailed example. Learn how to determine the equilibrium price and calculate the surplus caused by a price floor using a supply and demand graph. This example demonstrates the impact of price controls on market efficiency and is suitable for high school economics students.

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