The diagram shows the market for spectacles. Initially the market equilibrium price is PO and quantity ${Q_3}$ is bought and sold.
The government then sets both a maximum price of ${P_X}$ and a minimum price of ${P_M}$.
What effect will these measures have on the market for spectacles?
1 )
create a shortage of spectacles equal to ${Q_1}{Q_5}$
2 )
create a surplus of spectacles equal to ${Q_2}{Q_4}$
3 )
create a surplus of spectacles equal to ${Q_3}{Q_4}$
leave the quantity bought and sold unchanged
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