Which of the Following Is True for a Price ?Oor

question 86

Multiple Choice

Which of the following is true for a price ?oor?

• A) It is illegal to sell a good at a price below the price ?oor set in the market.
• B) The price ?oor must be higher than the equilibrium price to effectively reduce
• C) A price ?oor creates a shortage in the market.
• D) Price ?oors are usually set when the prices for essential goods like fuel are very high.

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Definitions:

Rawlsian Justice

A theory of justice that emphasizes fairness and equality, proposing that social and economic inequalities should be arranged to benefit the least advantaged members of society.

Social Contract

A philosophical theory or model that originates from the Age of Enlightenment, positing that individuals have consented, either explicitly or tacitly, to surrender some of their freedoms and submit to an authority in exchange for protection of their remaining rights.

Rawlsian Justice

A theory of justice that emphasizes fairness and equality, proposing principles to structure society for the benefit of all, especially the least advantaged.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.