Suppose That the Equilibrium Price Is $20 and the Government

question 70

Multiple Choice

Suppose that the equilibrium price is $20 and the government sets the price floor at $30. The result of this price floor is:

• A) negligible.
• B) equilibrium.
• C) surplus.
• D) shortage.

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Definitions:

Dummy Variables

Variables used in regression analysis to represent subgroups of the sample in a binary form.

Grade Point Average

An average score representing the academic performance of a student, calculated from the grades obtained in their courses.

Indicator Variables

Dummy variables used in regression models to encode categorical data into numbers, typically 0 or 1, to include them in statistical analysis.

Number of Hours

The total count of hours measured in a given context, often referring to the duration of events or the amount of time spent on activities.