In the following graph, QS and QD represent the supply and the demand curves respectively. Refer to the graph to answer the question

If the minimum price of the good is set at £2, which of the following is likely to happen?

There will be a surplus of 200 units in the market.Correct
The minimum price will not affect quantity demanded or supplied as it is set above the equilibrium price.
The total quantity of the good bought and sold in the market will be equal to 200 units.
The imports of the good will increase.

Explanation
If the price floor is set at £2 above the equilibrium price, the quantity supplied will be 300 units and the quantity demanded will be 100 units. Therefore, there is a surplus of 200 units.