The diagram depicts the market for spectacles. At first, the market equilibrium price is PO and quantity Q3 is bought and sold. The government then imposes a maximum price of PX as well as a minimum price of PM. What impact will these policies have on the market for spectacles?
- Acreate a shortage of spectacles equal to Q1Q5
- Bcreate a surplus of spectacles equal to Q2Q4
- Ccreate a surplus of spectacles equal to Q3Q4
- Dleave the quantity bought and sold unchanged