Final answer:
If the government sets a minimum price of $50 in the above market, a surplus of 125 units would occur. If the price was $120, it depends on whether it is higher or lower than the equilibrium price to determine if a shortage or a surplus would exist.
Step-by-step explanation:
In the above market, if the government sets a minimum price of $50, a surplus of 125 units would occur. This is because the minimum price is higher than the equilibrium price, resulting in a decrease in quantity demanded and an increase in quantity supplied.
If the price was $120, we need to compare it to the equilibrium price to determine the quantity demanded and supplied. If $120 is higher than the equilibrium price, a surplus would exist. If it is lower, a shortage would exist. Unfortunately, the context and information necessary to answer this part of the question are missing.