Final answer:
A price floor of $1.00 creates a surplus of 70 units resulting from the imposition of a price floor exceeding the equilibrium price. . So, the correct answer is C. Surplus, 70.
Step-by-step explanation:
A price floor, established by the government, represents the minimum price mandated for a specific good or service, and in this scenario, it is fixed at $1.00.
When this designated price floor surpasses the equilibrium price, a surplus ensues due to an imbalance between the quantity supplied and the quantity demanded.
In this context, the surplus amounts to 70 units.
The divergence between the government-mandated minimum price and the equilibrium price triggers an excess supply, as suppliers are willing to provide more units than consumers are willing to purchase at the elevated price floor.
Consequently, the surplus of 70 units resulting from the imposition of a price floor exceeding the equilibrium price.
This economic phenomenon underscores the impact of government interventions on market dynamics, influencing the delicate balance between supply and demand.
Therefore, the correct answer is C. Surplus, 70.