Regarding Price Floors on Prices, the Result of a Higher-Than-Equilibrium

question 155

Multiple Choice

Regarding price floors on prices, the result of a higher-than-equilibrium market price is

• A)a loss in producer surplus and a gain in consumer surplus.
• B)a gain in producer surplus and a loss in consumer surplus.
• C)a loss in both producer surplus and consumer surplus.
• D)a gain in both producer surplus and consumer surplus.
• E)no change in both producer surplus and consumer surplus.

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Definitions:

Appointment

A prearranged meeting or arrangement to see someone at a specific time and place.

Topographical Model

Sigmund Freud’s model of the mind that highlights the conflict between the pleasure principle and the reality principle.

Preconsciousness

The part of the mind that contains thoughts and feelings not currently in consciousness but can be accessed easily.

Conscious Awareness

The psychological state of being fully attentive to one's thoughts, feelings, and experiences in the present moment.