What Is the Difference Between a Price Support and a Price

question 121

Multiple Choice

What is the difference between a price support and a price floor?

• A) A price support is below equilibrium; a price floor is above it.
• B) A price support is above equilibrium; a price floor is below it.
• C) Government buys the excess supply to maintain a price floor, but not a price support.
• D) Government buys the excess supply to maintain a price support, but not for a price floor.
• E) There is no difference between the two.

---

Definitions:

Species Richness

The number of different species represented in an ecological community, landscape, or region.

Müllerian Mimicry

The resemblance of dangerous, unpalatable, or poisonous species to one another so that potential predators recognize them more easily. Compare with Batesian mimicry.

Batesian Mimicry

The resemblance of a harmless or palatable species to one that is dangerous, unpalatable, or poisonous so that predators are more likely to avoid them. Compare with Müllerian mimicry.

Warning Colors

Bright colors exhibited by some animals as an evolutionary strategy to warn predators of their toxicity or unpleasant taste.