Because a Price Floor Causes

question 51

Multiple Choice

Because a price floor causes:

• A) a shortage, some form of rationing must occur.
• B) excess supply, some producers may ultimately lose because they won't have enough customers.
• C) a shortage, rent-seeking will occur.
• D) excess supply, everyone will be better off.

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Definitions:

Oral Contract

An agreement between parties spoken and agreed upon verbally, rather than in written form; although legally binding, it may be harder to prove.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by the parties involved to be enforceable.

Oral Contract

An agreement between parties that is spoken and not written, yet it is legally binding.

Employment Agreement

A contractual relationship between an employer and an employee outlining the terms of employment, including duties, responsibilities, and compensation.