A Binding Price Floor Creates a Surplus,which Means

question 146

Multiple Choice

A binding price floor creates a surplus,which means:

• A) there will be downward pressure on prices until quantity demanded equals quantity supplied.
• B) there will be upward pressure on prices until quantity demanded equals quantity supplied.
• C) there will be upward pressure on the quantity demanded until quantity demanded equals quantity supplied.
• D) the quantity demanded will always exceed the quantity supplied.
• E) the quantity demanded will always be smaller than the quantity supplied.

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Definitions:

Positive Statement

An objective and fact-based statement or claim that describes how the world actually is, as opposed to what it should be, often used in economic analysis.

Normative Statement

A value judgment that expresses an opinion or belief about what ought to be, rather than statements of fact.

Administrative Department

A part of an organization responsible for managing its internal affairs and ensuring the efficient execution of operations.

Economists

Professionals who study the production, distribution, and consumption of goods and services, often analyzing economic issues and trends.