A Price Floor Causes Excess Demand, Resulting in the Need

question 36

True/False

A price floor causes excess demand, resulting in the need to ration by some means other than price.

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Definitions:

Elasticity Of Supply

A measure of how much the quantity supplied of a good changes in response to a change in its price.

Tax Revenue

It's the income that is collected by governments through taxation.

Excise Tax

A tax on specific goods, such as alcohol and tobacco, typically imposed at the point of manufacture or sale.

Total Tax Revenue

The total amount of money collected by the government from taxes, which can come from various sources like income taxes, sales taxes, and corporate taxes.