Question

The market equilibrium for grain transportation by truck is $0.30 per bushel, but policy makers feel this is unfair to truck drivers. They propose a price control that sets the minimum price at $0.35 per bushel. This will                            [CHOOSE]                       ["increase", "decrease", "have no effect on"]         the price of shipping grain by truck, and also create                            [CHOOSE]                       ["a surplus of", "a shortage of", "lower profits for", "higher costs for"]         truck drivers willing to ship grain.  

Answer 1

As the minimum price is set above the equilibrium price

This will increase the price of shipping grain by truck and also create a surplus of truck drivers willing to ship grain