Detailed Answer
(b) The requirement is to identify the market feature
that is likely to cause a surplus of a particular product. Answer
(b) is correct because a price floor, if it is above the equilibrium
price, will cause excess production and a surplus. Answer
(a) is incorrect because a monopoly market is likely to be
characterized by underproduction of the product. Answer (c) is
incorrect because a price ceiling, if it is below the equilibrium
price, will cause underproduction and shortages. Answer (d) is
incorrect because in a perfect market with no intervention demand
and supply will be equal.