When a Binding Price Floor Is Imposed on a Market

question 62

Multiple Choice

When a binding price floor is imposed on a market,

• A)price no longer serves as a rationing device.
• B)the quantity demanded at the price floor exceeds the quantity that would have been demanded without the price floor.
• C)all sellers benefit.
• D)All of the above are correct.

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Definitions:

Leaders

Lines in technical drawings that connect annotations or notes to specific features, usually with an arrowhead pointing to the feature of interest.

Curved Feature

A design element in a drawing or physical object that incorporates one or more curves, rather than straight lines exclusively.

Inside Corner

The point where two intersecting walls or surfaces meet on the interior side, often requiring special consideration in design for stress concentration.

Radius

The distance from the center of a circle to any point on its circumference, also used to describe the curvature of rounded objects.