If the equilibrium price of corn is 20 cents an ear and the government imposes a floor of 30 cents an ear,the price of corn will ______________________.

A) increase to 30 cents
B) remain at 20 cents
C) rise to about 25 cents
D) be impossible to determine

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand.

Government Imposes

Refers to regulations, taxes, or policies that a government enforces or puts into effect in order to manage the country's affairs.

Floor

The minimum price or wage level that is legally or otherwise formally set, below which the actual price or wage cannot fall.