Which Action Could Cause the Price Floor Shown in the Graph

question 120

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:

Cash-to-Cash Cycle

The time period between when a business pays cash to its suppliers for inventory and receives cash from its customers for goods or services sold.

Responsiveness

The ability of an organization or system to quickly and effectively adapt to changes or respond to customers.