When Supply and Demand Are Both Elastic, a Price Floor

question 7

Multiple Choice

When supply and demand are both elastic, a price floor will cause a:

• A) larger surplus than when supply and demand are inelastic.
• B) smaller surplus than when supply and demand are inelastic.
• C) larger shortage than when supply and demand are inelastic.
• D) smaller shortage than when supply and demand are inelastic.

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

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A reservoir of feelings, thoughts, urges, and memories that are outside of our conscious awareness.

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The average number of years an individual is expected to live, based on statistical averages of age-specific death rates.

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Geographic regions defined by the uniform standard time they observe, which are typically offset from Coordinated Universal Time (UTC).