Both Price Supports and a Price Floor Can

question 232

Multiple Choice

Both price supports and a price floor can

• A) create a deadweight loss.
• B) decrease output below the equilibrium quantity.
• C) decrease the price below the equilibrium price.
• D) increase consumer surplus.
• E) have no effect on producer surplus.

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Definitions:

Binary Search

An efficient algorithm for finding an item from a sorted list of items, by repeatedly dividing in half the portion of the list that could contain the item.

Sorted List

A list that maintains its elements in a sorted order, either ascending or descending, making it efficient for operations like searching.

Maximum Comparisons

The term usually refers to the highest number of comparisons required to complete an operation, often used in the context of sorting and searching algorithms.

Binary Search

A searching algorithm that finds the position of a target value within a sorted array by repeatedly dividing in half the portion of the list that could contain the target value.