If the Government Imposes a Price Floor That Is Above

question 54

Multiple Choice

If the government imposes a price floor that is above the equilibrium price,then the market will experience

• A) an equilibrium.
• B) a shortage.
• C) an excess supply.
• D) an increase in demand.

---

Definitions:

Capacity Analysis

The evaluation of a facility's production capabilities to understand the maximum amount of work it can handle or produce.

Tech Support Department

A functional organization within a company providing technical assistance and support related to computer systems, software, and hardware to customers or internal users.

Time-Driven Activity-Based Costing

A method of costing that assigns costs to products based on the time required to produce each product.

Capacity Analysis

Capacity Analysis is the assessment of the production capability of a facility to understand if it meets the demands placed upon it.