Questions: If a price floor is set above the equilibrium price in a market the quantity demanded will exceed the quantity supplied. the quantity supplied will exceed the quantity demanded. rationing will be unnecessary.

The answer is C: the quantity supplied will exceed the quantity demanded.

Explanation for each option:

A. Shortages will develop.
This is incorrect. A shortage occurs when the quantity demanded exceeds the quantity supplied, which typically happens when a price ceiling is set below the equilibrium price. In the case of a price floor set above the equilibrium price, the opposite occurs.

B. The quantity demanded will exceed the quantity supplied.
This is incorrect. When a price floor is set above the equilibrium price, it results in a surplus, not a shortage. The higher price reduces the quantity demanded while increasing the quantity supplied.

C. The quantity supplied will exceed the quantity demanded.
This is correct. A price floor set above the equilibrium price leads to a surplus because producers are willing to supply more at the higher price, but consumers are not willing to buy as much, resulting in excess supply.

D. Rationing will be unnecessary.
This is incorrect. Rationing is typically associated with shortages, not surpluses. In the case of a surplus caused by a price floor, the issue is not a lack of goods but rather an excess of goods that cannot be sold at the higher price.