Assume a Price Floor Is Imposed at the Current Equilibrium

question 46

Multiple Choice

Assume a price floor is imposed at the current equilibrium price in the market for lettuce. If the demand for lettuce then increases, what will result?

• A) The quantity of lettuce traded remains the same.
• B) A shortage of lettuce will be created.
• C) A surplus of lettuce will be created.
• D) The quantity of lettuce supplied will increase.

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through under prolonged stress.

General Adaptation Syndrome

A model describing the body's stress response in three stages: alarm, resistance, and exhaustion.

Type A Behavior Pattern

A cluster of characteristics—including being excessively competitive, hard-driven, impatient, and hostile—that is related to a higher incidence of heart disease.

Type B Behavior Pattern

A cluster of characteristics—including being relaxed and easygoing—that is related to a lower incidence of heart disease.