If the government imposes a minimum price on a commodity

If the government imposes a minimum price on a commodity
A. market surplus occurs
B. the market will be cleared in the short-run
C. excess demand occurs
D. government regulation is no longer needed
Correct Option: Answer is C
When the government imposes a minimum price on a commodity, it is setting a price that is higher than the equilibrium price. This means that there will be excess demand for the commodity, as consumers will want to buy more of the commodity than producers are willing to supply at the higher price.

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