Which Action Could Cause the Price Floor Shown in the Graph

question 134

Multiple Choice

Which action could cause the price floor shown in the graph to become non-binding?

• A) An increase in demand (shift to the left)
• B) A decrease in supply (shift to the left)
• C) An increase in supply (shift to the right)
• D) None of these would cause the price floor to become non-binding.

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Definitions:

Drive

An internal motivating force that compels action towards fulfilling a need or achieving a goal.

Incentive

Something that motivates or encourages someone to do something, often used in contexts of motivation and behavioral economics.

Need

A requirement for something because it is essential or very important, often referring to something necessary for psychological or physical survival.

Drive Reduction

A theory in psychology that motivation arises from biological needs driving behavior to return to a state of homeostasis or balance.