A Price Floor

question 20

Multiple Choice

A price floor

• A) always results in a surplus.
• B) always results in a shortage.
• C) results in a surplus if the floor price is higher than the equilibrium price.
• D) results in a shortage if the floor price is higher than the equilibrium price.

Apply concepts of surplus to evaluate changes in market conditions.

Understand the concept of consumer surplus and how to calculate it.

Comprehend the relationship between market price, consumer willingness to pay, and consumer surplus.

Interpret graphical representations of market demand and consumer surplus.

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Definitions:

Intertrial Interval

The amount of time that passes between the end of one trial or test and the beginning of the next in experimental contexts.

Conditioned Relief

A learned response where an organism anticipates the removal of an aversive stimulus, thus reducing stress or discomfort.

Effective Punishment

A method of decreasing undesired behavior by applying an adverse stimulus following the behavior, aiming to reduce or eliminate that behavior.

Unwanted Motivation

Motivation that is unintended or undesirable, often leading to behaviors that are not aligned with an individual's long-term goals or values.