The following equations describe the demand and supply of the market for taxi services in Utopia.

Demand: P=100-5Q_d

Supply: P=10+4Q_s

where P is the taxi fare ($/km), Q_d  and Q_s are quantity demanded and quantity supplied respectively.

What happens in the short run if the government decides to set a price floor at $60 (Ignore

the effect on long-run quality change)?

(I) The quantity demanded for taxi services will increase.

(II) The supply for taxi services will fall.

(III) The taxi fare would remain the same.

(IV) The quantity supplied for taxi services will increase.