When a Binding Price Floor Is Imposed on a Market

question 205

Multiple Choice

When a binding price floor is imposed on a market to benefit sellers,

• A)no sellers actually benefit.
• B)some sellers benefit,but no sellers are harmed.
• C)some sellers benefit,and some sellers are harmed.
• D)all sellers benefit.

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Definitions:

Valid Gift

A gift that meets all legal requirements for its transfer from one party to another without the expectation of payment or return.

Traditional Rule

Refers to long-established norms or practices that dictate certain procedures or behaviors, often in legal or societal contexts.

Conditional Gift

A stipulation in which the transfer of an asset, money, or property is subject to fulfilling a specific condition by the receiver.

Incomplete Gift

A gift for which the legal process of transfer has not been entirely finalized or where the donor has retained some control over the gift.