A Nonbinding Price Floor

question 319

Multiple Choice

A nonbinding price floor
(i) causes a surplus.
(ii) causes a shortage.
(iii) is set at a price above the equilibrium price.
(iv) is set at a price below the equilibrium price.

• A)(iii) only
• B)(iv) only
• C)(i) and (iii) only
• D)(ii) and (iv) only

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Definitions:

Fairness and Honesty

Fairness and honesty refer to the ethical practices of being impartial, just, and truthful in personal actions and business transactions.