A Price Floor Is a Situation Where the

question 97

Multiple Choice

A price floor is a situation where the

• A) price is not allowed to rise above a certain level.
• B) price is not allowed to fall below a certain level.
• C) price is not allowed to change.
• D) quantity is not allowed to fall below a certain level.
• E) quantity is not allowed to rise above a certain level.

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Definitions:

Derived Demand

The demand for a product or resource resulting from the demand for another product or service.

Outputs

Refers to the goods or services produced by a business or an economic system.

Factor of Production

An input used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.