A Price Floor Set Above an Equilibrium Price Tends to Cause

question 118

Multiple Choice

A price floor set above an equilibrium price tends to cause persistent imbalances in the market because

• A) Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
• B) Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
• C) Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
• D) Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.

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Definitions:

Findings

Results or conclusions derived from scientific research or investigations.

Cognitive Intrusions

Unwanted, disruptive thoughts that intrude into conscious awareness, often associated with stress or trauma.

Obsessions

Persistent, intrusive, and unwanted thoughts, images, or urges that cause significant anxiety or distress.

Appraised

A process of assessing or estimating the value, quality, or importance of something.