A Nonbinding Price Floor Has Which of the Following Consequences

question 145

Multiple Choice

A nonbinding price floor has which of the following consequences?

• A) There will be downward pressure on prices until quantity demanded equals quantity supplied.
• B) There will be upward pressure on prices until quantity demanded equals quantity supplied.
• C) There are no consequences to a nonbinding price floor.
• D) The quantity demanded will always exceed the quantity supplied.
• E) The quantity demanded will always be smaller than the quantity supplied.

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Definitions:

EPA Standards

Regulations set by the Environmental Protection Agency aimed at protecting human health and the environment.

Water Systems

Infrastructure and resources designed for the delivery, treatment, and distribution of water for consumption, sanitation, and irrigation.

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Water that is safe to drink or to use for food preparation, treated to remove contaminants and pathogens.

Edge City

A term for a concentrated area of business, shopping, and entertainment outside a traditional downtown or urban core.