An AP Microeconomics student is given a scenario involving the potato market where a price floor has been implemented. Which of the following categories best describes the student's ability to analyze this situation in a long response question format?

In this scenario, the student's ability to analyze the potato market with a price floor can be categorized as understanding the effects of government intervention on supply and demand. A price floor sets a minimum price for potatoes, which means sellers cannot sell them for less than this price. This can lead to a surplus because at the higher price, producers are willing to supply more potatoes, but consumers may buy less due to the increased cost. For example, if the price floor is set above the equilibrium price, farmers might grow more potatoes, but if consumers are not willing to buy them at that price, there will be leftover potatoes that go unsold. Therefore, the student needs to explain how this price floor affects both producers and consumers, demonstrating their understanding of market dynamics.