Which of the Following Is True

question 151

Multiple Choice

Which of the following is true?
i.A price support is inefficient.
ii.A price floor set above the equilibrium price creates a surplus.
iii.A price ceiling set above the equilibrium price creates a black market.

• A) Only i
• B) Only ii
• C) Only iii
• D) i and ii
• E) ii and iii

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Definitions:

Antitrust Laws

Legislation enacted to promote competition and prevent monopolies by regulating anti-competitive business practices.

Scuba Gear

Equipment used for underwater diving that allows a diver to breathe underwater, typically including items such as a mask, fins, regulator, and an air tank.

Sherman Act

A landmark federal statute in the field of antitrust law in the United States that prohibits monopolistic practices and promotes competition.

Antitrust Violation

An act or practice that significantly interferes with competitive processes in a marketplace, contrary to antitrust law.