A Price Floor Means That

question 112

Multiple Choice

A price floor means that

• A)inflation is severe in this particular market.
• B)sellers are artificially restricting supply to raise price.
• C)government is imposing a maximum legal price that is typically below the equilibrium price.
• D)government is imposing a minimum legal price that is typically above the equilibrium price.

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Definitions:

Augmented Matrix

An augmented matrix is a matrix used in linear algebra, consisting of the coefficient matrix of a system of linear equations and one or more columns added to the right, representing the constants from the equations' right-hand sides.

Linear Equations

Equations in which the highest power of the variable is one, graphically represented as straight lines.

Variables

Symbols used to represent unspecified numbers or values.

Ordered Triple

A set of three numbers used to locate a point in three-dimensional space.