Suppose the Equilibrium Price of a Tube of Toothpaste Is

question 80

Multiple Choice

Suppose the equilibrium price of a tube of toothpaste is $2,and the government imposes a price floor of $3 per tube.As a result of the price floor,

• A)quantity demanded decreases.
• B)quantity supplied increases.
• C)there is a surplus.
• D)All of the above are correct.

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Definitions:

Automatic System

Cognitive processes that occur without conscious control or deliberation, typically fast and efficient, handling tasks such as perception, encoding, and simple decision-making.

Unconscious

The part of the mind that contains thoughts, memories, and desires not within the realm of current awareness.

Brain

The organ located in the head of an animal that coordinates its behavior and processes sensory information; it's the center of the nervous system in humans and other vertebrates.

Information

Data, knowledge, or details that are provided or learned about something or someone.