A Price Floor Set Above an Equilibrium Price Tends to Cause

question 118

Multiple Choice

A price floor set above an equilibrium price tends to cause persistent imbalances in the market because

• A) Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
• B) Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
• C) Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
• D) Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.

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Definitions:

Ego-Focused

Refers to a perspective or behavior primarily concerned with self-interest and personal well-being.

Sentiment

The social aspect of emotion. Components of human responses that separate them from analogous responses animals would have.

Affect

A subjective positive or negative evaluation of an object, which can vary in direction, intensity, and activity.

Emotion

A complex psychological state involving three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.