In the Presence of a Price Floor, Some Suppliers Are

question 170

True/False

In the presence of a price floor, some suppliers are willing to take a lower price for their goods, but these trades never take place because they are illegal. This illustrates the problem of misallocation of resources.

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Definitions:

Specific Action

A particular, well-defined step taken to achieve a goal or objective.

Inconvenience

A mild annoyance or discomfort that causes a temporary interruption or difficulty in a person's routine or plans.

Consequences

The outcomes or effects that result from a particular action or set of conditions, often in terms of cause and effect.

Professional Tone

The formal or semi-formal manner of communication that is used in the workplace or when conducting business, which conveys respect and seriousness.