A Side Effect of a Price Floor Set Above the Equilibrium

question 241

Multiple Choice

A side effect of a price floor set above the equilibrium price is:

• A) the new price is below equilibrium price.
• B) an excess supply of the good is created.
• C) an excess demand for the good is created.
• D) the supply of the good decreases.
• E) the demand for the good increases.

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Definitions:

Hallucination

A perception of something that is not present or that is incorrectly perceived, usually auditory or visual.

Apathy

A lack of interest, enthusiasm, or concern.

APA (American Psychological Association)

A professional organization representing psychologists in the United States, also known for its publication style guide.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a guide used by healthcare professionals as the authoritative standard for diagnosing mental disorders.