Which Statement Is the Best Explanation for the Imposition of a Price

question 127

Multiple Choice

Which statement is the best explanation for the imposition of a price floor in the market for corn

• A)Policymakers have studied the effects of the price floor carefully and recognize that the price floor is advantageous for society as a whole.
• B)Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policymakers into enacting the price floor.
• C)Buyers of corn, recognizing that the price floor is good for them, have pressured policymakers into enacting the price floor.
• D)Sellers of corn, recognizing that the price floor is good for them, have pressured policymakers into enacting the price floor.

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Definitions:

Fixed Assets

Long-term tangible assets that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.

Sales Increase

A situation where a company experiences a rise in the volume or value of its product sales over a particular period.

Operating Capacity

The maximum output a company can produce using its current resources and technology.