A Price Floor That Is Set at $23 in the Market

question 66

Multiple Choice

A price floor that is set at $23 in the market shown in the graph is:

• A) binding and would cause a shortage.
• B) non-binding and would not affect the market.
• C) binding and would cause excess supply.
• D) non-binding and would not prevent the market from reaching equilibrium.

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Definitions:

Geolocation

The method of identifying the geographical location of a person or device, usually by utilizing information processed through the Internet.

GPS

A global positioning system that uses satellites to provide location and time information in all weather conditions, anywhere on or near the Earth.

Smartphone

Phone with features of a computer including a wide assortment of apps, media players, high-quality cameras, and web connectivity.

Uber

A platform and service that connects passengers with drivers for hire via a mobile app, often considered a pioneer in the ride-sharing industry.