A Market Consequence of the Establishment of a Price Floor

question 12

Multiple Choice

A market consequence of the establishment of a price floor program is that price will be:

• A) too low, and an excess supply will result.
• B) too low, and a shortage will result.
• C) too high, and an excess supply will result.
• D) too high, and a shortage will result.
• E) below the market equilibrium price.

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Definitions:

Understand Risk

The process of identifying, assessing, and prioritizing potential risks to minimize their impact on objectives.

Statistical

Relating to or involving the use of statistics to collect, analyze, interpret, and present data.

Diagnostic Analytics

Diagnostic analytics is the process of examining data to understand the reasons behind past performance, focusing on identifying patterns, correlations, and cause-effect relationships.

Prescriptive

Relating to providing guidance or recommendations on what actions to take, often based on analytical models.