Suppose the Equilibrium Price of a Litre of Milk Is

question 70

Multiple Choice

Suppose the equilibrium price of a litre of milk is $4. If the government imposes a price floor of $5 per litre of milk, the

• A) quantity supplied of milk exceeds the quantity demanded.
• B) price of milk remains $4 per litre.
• C) supply increases.
• D) demand decreases.
• E) quantity supplied of milk falls short of the quantity demanded.

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Definitions:

Diatomaceous Earth

A naturally occurring, soft, siliceous sedimentary rock that is easily crumbled into a fine white to off-white powder, used in various industrial and commercial applications.

Pellicle

Structure that supports the cell membrane of some species of protists; used to maintain structure in a water environment.

Dinoflagellates

A group of protists characterized by two flagella, forming part of both marine and freshwater plankton and often producing harmful algal blooms.

Euglenoids

A diverse group of single-celled organisms belonging to the kingdom Protista, characterized by their flexible cell membranes and the presence of a flagellum.