The Consequence of a Price Floor Set Below the Equilibrium

question 56

Multiple Choice

The consequence of a price floor set below the equilibrium price is

• A) a surplus,where the quantity demanded exceeds the quantity supplied.
• B) a shortage,where the quantity demanded exceeds the quantity supplied.
• C) a surplus,where the quantity supplied exceeds the quantity demanded.
• D) a shortage,where the quantity supplied exceeds the quantity demanded.
• E) nothing; the price floor will have no impact on the quantity demanded or the quantity supplied.

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Definitions:

Public Lands

Areas owned and maintained by the government for the use and benefit of the general public.

Earth's Ecosystems

The complex networks of living organisms and their physical environment present on Earth, interacting as a system and including both natural and human-modified ecosystems.

Wilderness Areas

Natural environments on Earth that have not been significantly modified by human activity, designated for conservation and as habitats for numerous species.

Biological Diversity

The encompassing term for the variety among living organisms from all sources, including terrestrial, marine, and other aquatic ecosystems.