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:

Shortness of Breath

A sensation of not being able to breathe well enough, which can be a symptom of various medical conditions, including asthma, heart disease, and anxiety.

Trembling

An involuntary shaking or quivering movement resulting from stress, fear, weakness, or illness.

Agoraphobia

A type of anxiety disorder characterized by an extreme fear of being in places or situations from which escape might be difficult.

Overwhelming Fear

Overwhelming fear is an intense emotional response characterized by a sense of dread or panic that can disrupt normal functioning and is often disproportionate to the actual threat posed.