The Surplus Created by a Price Floor Will Likely Be

question 104

Multiple Choice

The surplus created by a price floor will likely be

• A) smaller if the good is a necessity.
• B) larger if the good is addictive.
• C) smaller if the good is a luxury.
• D) unaffected by the time that has elapsed since the price ceiling is implemented.
• E) None of the above answers is correct.

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Definitions:

Unconscious

Part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions, a fundamental concept in psychoanalytic theory.

Subconscious

Part of the mind that operates below the level of conscious awareness, storing memories, desires, and experiences that influence conscious thought and behavior indirectly.

Id

The Id is a concept in psychoanalytic theory referring to the part of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Ego

Part of Sigmund Freud's model of the psyche, the ego represents the realistic part that mediates between the desires of the id, the demands of the environment, and the moral standards of the superego.