A Side Effect of a Price Floor Set Above the Equilibrium

question 241

Multiple Choice

A side effect of a price floor set above the equilibrium price is:

• A) the new price is below equilibrium price.
• B) an excess supply of the good is created.
• C) an excess demand for the good is created.
• D) the supply of the good decreases.
• E) the demand for the good increases.

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Definitions:

Alignment

The process of adjusting various elements or strategies within an organization so that they are coordinated and support the overall objectives.

Participative Decision Making

A leadership style where employees at all levels are encouraged to contribute ideas and opinions towards making decisions that affect their work and the organization.

Emotional Support

Emotional support entails offering empathy, concern, encouragement, and love to someone, helping them cope with stress and emotional challenges.

Higher Purpose

A guiding or overarching goal that transcends individual desires or ambitions, often related to altruism or contribution to a larger cause.