The Consequence of a Price Floor Set Below the Equilibrium

question 56

Multiple Choice

The consequence of a price floor set below the equilibrium price is

• A) a surplus,where the quantity demanded exceeds the quantity supplied.
• B) a shortage,where the quantity demanded exceeds the quantity supplied.
• C) a surplus,where the quantity supplied exceeds the quantity demanded.
• D) a shortage,where the quantity supplied exceeds the quantity demanded.
• E) nothing; the price floor will have no impact on the quantity demanded or the quantity supplied.

---

Definitions:

Evolved

Pertaining to the gradual development of something, often biological traits, over generations through the processes of natural selection and adaptation.

Provide

To supply or make available something that is needed or desired.

Play Stage

A phase in child development theorized by George Herbert Mead where children begin to take on roles of significant others, practicing and experimenting through play.

Roles

The expected behaviors, duties, and activities assigned to an individual based on their status or position in a social unit or structure.