If a Minimum Price Is Set Above Equilibrium (Assuming a Downward

question 8

Multiple Choice

If a minimum price is set above equilibrium (assuming a downward sloping demand curve and upward sloping supply curve) there will be:

• A) A price fall
• B) Excess supply
• C) Excess demand
• D) A price increase

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Definitions:

Covenant of Grace

A theological term used in Christian doctrine that denotes an agreement between God and humanity in which salvation is offered through faith in Christ.

Puritan Congregationalists

Members of a Protestant sect that arose in the 16th century advocating strict religious discipline along with the simplification of the ceremonies and creeds of the Church of England.

Covenanted Community

A community formed through a formal agreement or covenant, often characterized by shared beliefs, values, or objectives, particularly in a religious or social context.

Massachusetts Bay Colony

An early English settlement established in 1630 by Puritan settlers seeking religious freedom in what is now Massachusetts, becoming one of the most successful and influential early colonies.