A Price Floor That Is Higher Than the Equilibrium Market

question 123

Multiple Choice

A price floor that is higher than the equilibrium market price results in

• A)a decrease in consumer surplus.
• B)a decrease in producer surplus but an increase in consumer surplus.
• C)a gain in both consumer surplus and producer surplus.
• D)Pareto efficiency.
• E)a decrease in deadweight loss.

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Definitions:

Drawbar Eye

The coupling eye that engages to either a pintle hook or the shank below a heavy-duty ball hitch assembly.

A-train Combination

A specific truck and trailer arrangement where a standard tractor pulls a semi-trailer which is connected to a "pup" trailer by a converter dolly, used to increase cargo capacity.

Pintle Hook

A hinged hook used for towing that allows the connection between a trailer and a towing vehicle, known for its durability and use in heavy-duty applications.

Upper Coupler Kingpin

The Upper Coupler Kingpin is a key component in the connection between a semi-trailer and the tractor, serving as a pivot point around which the trailer turns.