If a Market Is Initially Operating Competitively and Then the Government

question 12

Multiple Choice

If a market is initially operating competitively and then the government imposes a price floor above the equilibrium price,

• A)there will be more resources will be devoted to the production of this product
• B)quantity demanded will rise
• C)producer surplus will fall in the short run
• D)imposition of the floor is probably a positive-sum game
• E)consumer surplus will fall

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Definitions:

Erogenous Zone

Areas of the body that are particularly sensitive to stimulation and can lead to sexual arousal when touched.

Psychological Processes

The functions of the mind that encompass thoughts, emotions, and behaviors, which influence personality, perception, and overall mental health.

Genetic Defects

Abnormalities in an organism's DNA that can lead to diseases or malformations, often inherited from parents.

Inferiority Complex

A psychological condition in which a person feels a deep sense of inadequacy and lack of self-worth, often in comparison to others.