One of the Effects of a Price Floor (Set Above

question 56

Multiple Choice

One of the effects of a price floor (set above equilibrium price) is

• A) a surplus.
• B) higher-quality goods are produced.
• C) more satisfied customers.
• D) all of the above
• E) none of the above

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Definitions:

Indirect Expenses

Costs not directly linked to the production of goods or services, such as administrative and marketing expenses.

Subjective

Based on personal opinions, interpretations, points of view, or emotions rather than objective facts.

Cost of Goods Sold

The expenses directly related to the manufacturing of products sold by a business, including the costs associated with materials and labor.

Departmental Accounting

An accounting method that tracks the income, expenses, and profitability of individual departments within a company.