An Effective Price flOor Will

question 282

Multiple Choice

An effective price floor will

• A) force some firms in this industry to go out of business.
• B) result in a product surplus.
• C) result in a product shortage.
• D) clear the market.

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Definitions:

Hyperemia

An excess of blood in the vessels supplying an organ or other part of the body.

Induration

Hardening of a tissue, particularly the skin, because of edema or inflammation.

Blanching

A temporary whitening of the skin due to lack of blood flow, often used as a test for skin elasticity or capillary refill.

Transparent

Characterized by clarity and openness, allowing for visibility or understanding; often used figuratively to describe clear, honest communication.