A Price Floor

question 22

Multiple Choice

A price floor

• A) changes the equilibrium price if it is imposed in black markets.
• B) changes the price and quantity if it is set below the equilibrium price.
• C) changes the price and quantity if it is set above the equilibrium price.
• D) does not create a black market if it is set above the equilibrium price.
• E) changes the price and quantity only if it equals the equilibrium price.

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Definitions:

Organization Marketing

Marketing activities undertaken by organizations to promote themselves, their ideals, or their services to gain public support or business clients.

Place Marketing

The promotion of a particular locale or destination to attract more visitors, residents, or businesses.

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Fiscal policy characterized by lower percentages of income or value taken by government in taxes, often aimed at stimulating economic growth.

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Transportation systems and services designed to be usable by people with a wide range of abilities, including those with disabilities.