If a Binding Price Floor Is in Place and If

question 54

Multiple Choice

If a binding price floor is in place and if the demand curve for the product shifts rightward,one consequence would be

• A)an increase in the amount of excess demand.
• B)a decrease in the amount of excess demand.
• C)an increase in the amount of excess supply.
• D)a decrease in the amount of excess supply.
• E)a decrease in the quantity exchanged.

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Definitions:

Damages

Financial compensation that a person or organization is ordered to pay to another as restitution for harm or injury suffered.

Delaware

A U.S. state located on the Atlantic Coast in the mid-Atlantic region, known for its business-friendly corporation laws.

Publicly Traded Corporations

Companies whose shares are traded on public stock exchanges, allowing them to be bought by and sold to the general public.

Self-dealing

A situation in which an individual with fiduciary duties acts in their own best interest rather than in the interest of the beneficiaries, potentially leading to a conflict of interest.