Suppose the Government Decides to Eliminate a Binding Price Floor

question 6

Multiple Choice

Suppose the government decides to eliminate a binding price floor that it had previously imposed on a particular good. It can be expected that

• A) the price would increase, the quantity demanded would decrease and the quantity supplied would increase.
• B) the price would decrease, the quantity demanded would increase and the quantity supplied would decrease.
• C) the price would increase, the quantity demanded would increase and the quantity supplied would decrease.
• D) the price would decrease, the quantity demanded would decrease and the quantity supplied would increase.
• E) no changes would take place.

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Definitions:

Performance-related Problem

Issues associated with an employee's work, such as failing to meet job requirements or standards.

Behavior Related Problem

An issue arising from the actions or conduct of an individual that impacts the workplace.

Disciplinary Processes

Procedures followed by an organization to address and manage employee behavior that violates company policy or expectations.

First-line Managers

Managers at the lowest level of an organization who directly manage the work of non-managerial employees.