A Binding Price Floor in the Market for Wheat

question 176

Multiple Choice

A binding price floor in the market for wheat:

• A)increases the price paid by consumers.
• B)decreases the price paid by consumers.
• C)decreases the price received by farmers.
• D)does not change the price received by farmers.

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Definitions:

Accurate

The quality of being close to the true or correct value, without significant error or distortion.

Cent

A unit of currency equaling one-hundredth of various currencies, including the US dollar and the Euro.

Significant Figures

The digits in a number that are meaningful in terms of accuracy or precision, typically used in scientific measurements.

Percent

A ratio or fraction out of 100 used to express quantities in fractions of a hundred.