Price Floors Are Only Effective Below the Market Equilibrium

question 127

True/False

Price floors are only effective below the market equilibrium.

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Definitions:

Slope

The calculation of how steep or inclined a line is, determined by the ratio of its vertical shift to its horizontal shift between any two points on the line.

Inequality

A mathematical statement that uses inequality signs to compare two expressions, indicating that they are not equal and one has a greater or lesser value than the other.

Linear Inequality

An inequality that involves a linear function, represented by a linear equation but with inequalities like <, >, ≤, or ≥ instead of an equals sign.

Linear Inequality

An algebraic inequality in which each term is either a constant or the product of a constant and a single variable.