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:

Fruit

The sweet and fleshy product of a tree or other plant that contains seed and can be eaten as food.

Argument By Analogy

A form of reasoning that compares two different things because of their similarities in some respects.

Alike

Similar in nature, appearance, or characteristics; having resemblance or correspondence.

Inductive Generalization

A reasoning process that involves drawing broad conclusions from specific instances.