A Price Floor Set Above the Equilibrium Price

question 236

Multiple Choice

A price floor set above the equilibrium price

• A) creates a surplus.
• B) creates a shortage.
• C) creates excess demand.
• D) balances supply and demand.
• E) has no effect.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.

Proportion

The fraction or percentage that represents a part of a whole or any number of items in relation to the total.

Confidence Interval

A range of values, derived from the statistics of observed data, that is likely to contain the value of an unknown population parameter.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter.