An Effective Price Floor

question 46

Multiple Choice

An effective price floor

• A)Results in a surplus.
• B)Results in a shortage.
• C)Occurs when market prices are below equilibrium prices.

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Definitions:

Positive

Expressing or implying affirmation, agreement, or permission; in economics, may refer to aspects such as positive externalities or positive growth rates.

Decreasing

Refers to a situation where a quantity or level is going down or diminishing over time.

Positive

A term often used in economics and finance to denote values or changes that signify growth, improvement, or gains.

Decreasing

A trend or process of becoming less in size, amount, number, or degree.