Suppose the Government Decides to Eliminate a Binding Price Floor

question 70

Multiple Choice

Suppose the government decides to eliminate a binding price floor that it had previously imposed on a particular good.It can be expected that

• A)the price would increase,the quantity demanded would decrease and the quantity supplied would increase.
• B)the price would increase,the quantity demanded would increase and the quantity supplied would decrease.
• C)the price would decrease,the quantity demanded would decrease and the quantity supplied would increase.
• D)the price would decrease,the quantity demanded would increase and the quantity supplied would decrease.
• E)no changes would take place.

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Definitions:

Big Five Traits

A model describing five major dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Agreeableness

A personality trait characterized by altruism, trust, kindness, affection, and other prosocial behaviors.

Generativity

A concern for establishing and guiding the next generation, often seen as a stage of personal development in adulthood.

Erik Erikson

A psychologist known for his theory on the psychological development of human beings across eight stages of life.