Suppose a Price Floor Is Set by the Government Above

question 68

Multiple Choice

Suppose a price floor is set by the government above the market equilibrium price. Which of the following will result?

• A) There will be a surplus.
• B) The quantity demanded will exceed the quantity supplied.
• C) The demand curve will shift to the left.
• D) None of the above.

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Definitions:

Succeed

Achieving a desired goal, outcome, or status after effort, skill, or courage has been applied.

Attempt

An effort to achieve or complete a difficult task or action.

Polygraph Test

A lie detection examination that measures physiological responses, such as blood pressure, pulse, and perspiration, to determine truthfulness.

True Statements

Assertions that are in accordance with facts or reality, accurately reflecting what is the case.