In Order for a Price Floor to Be Binding, It

question 71

Multiple Choice

In order for a price floor to be binding, it must be set _______ the equilibrium price, and it will likely cause _______.

• A) above; a shortage
• B) below; a shortage
• C) above; excess supply
• D) below; excess supply

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Definitions:

Theories Of Poverty

Various explanations about the causes of poverty, including economic conditions, social policies, and cultural practices that lead to material deprivation for individuals or groups.

Hurricane Katrina

A devastating Category 5 hurricane that struck the Gulf Coast of the United States in August 2005, causing widespread destruction, particularly in the city of New Orleans.

New Orleans

A major United States port and the largest city and metropolitan area in the state of Louisiana, known for its distinct music, Creole cuisine, unique dialects, and annual celebrations and festivals, most notably Mardi Gras.

Causes Of Poverty

Various factors including unemployment, lack of education, and socio-economic policies that lead to insufficient income and resources.