Supply and Demand in Agriculture (Exhibit: Supply and Demand in Agriculture) To help farmers, a price floor would be set at P₁, causing a shortage of Qā‚ƒ-Qā‚€. A price ceiling would:
a) not be effective in this situation.
b) lead to an excess supply of agricultural products.
c) stabilize the market without causing shortages or surpluses.
d) lead to a situation where quantity demanded exceeds quantity supplied.