If a Price Floor Is Imposed at $15 Per Unit

question 40

Multiple Choice

If a price floor is imposed at $15 per unit when the equilibrium market price is $12,there will be

• A) no surplus or shortage.
• B) a surplus.
• C) a shortage.
• D) a downward pressure on prices.
• E) an upward pressure on prices.

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Definitions:

Compounded Annually

Interest calculated on the initial principal and also on the accumulated interest from previous periods within a year.

Home Ownership Savings Plan (HOSP)

A savings plan designed to help individuals accumulate funds towards the purchase of a home.

Quarterly

Occurring every three months or constituting one-fourth of a year.

Compounded Semi-Annually

Interest is calculated and added to the principal twice a year.