Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A)With a price floor, the market will not clear.
• B)With a price floor, consumers will buy less of the good than they would in a free market.
• C)With a price floor, producer surplus will always increase.
• D)With a price floor there will be excess supply.

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Definitions:

Performance Levels

Measures of an individual, group, or organization's output compared to a predefined standard or expectation.

Direct Costs

Costs that can be directly attributed to the production of specific goods or services, such as labor and materials.

Factory Rent

Factory rent is the cost associated with leasing or renting a manufacturing facility, which is typically categorized as a fixed expense for the business.

Wages

Payments made to employees, typically on an hourly, daily, or weekly basis, for the labor or services they provide.