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:

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service with the same amount of resources compared to others.

Absolute Advantage

The capacity of a person, company, or nation to generate a greater quantity of a product or service using an identical quantity of inputs as compared to competitors.

Broccoli

A green plant from the cabbage family, known for its nutritional benefits and widely consumed as a vegetable.

Opportunity Cost

The cost attached to not opting for the immediately lesser favorable choice when making a decision.