A Price Floor That Is Set Above the Equilibrium Price

question 13

Multiple Choice

A price floor that is set above the equilibrium price

• A)causes suppliers to lower their prices.
• B)is binding.
• C)is non-binding.
• D)creates a shortage.

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Definitions:

Bribing

Bribing is the act of giving or receiving something of value in exchange for some kind of influence or action in return, that the recipient would otherwise not offer.

Political Candidates

Individuals who are running for political office, seeking to be elected to represent the public in governmental bodies.

Balance of Payments

is a record of all financial transactions made between consumers, businesses, and the government in one country with those in other countries over a specific period.