The diagram below shows the supply and demand for sugar beet in a domestic market.
Which of the following is the most likely outcome if the government legally enforces a minimum price at P1P_1P1?
There will be a persistent surplus of sugar beet in the market equal to Qs−QdQ_s - Q_dQs−Qd.
The market will experience a chronic shortage of sugar beet equal to Qs−QdQ_s - Q_dQs−Qd.
The total quantity of sugar beet bought and sold in the market will increase to QsQ_sQs.
Market forces will immediately drive the price down to P0P_0P0 to eliminate any excess supply.
