Which of the Following Is a Consequence of a Non-Binding

question 37

Multiple Choice

Which of the following is a consequence of a non-binding price floor?

• A) There will be downward pressure on prices until quantity demanded equals quantity supplied.
• B) There will be upward pressure on prices until quantity demanded equals quantity supplied.
• C) There are no consequences to a non-binding price floor.
• D) The quantity demanded will always exceed the quantity supplied.
• E) The quantity demanded will always be smaller than the quantity supplied.

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Definitions:

ETFs

Exchange-Traded Funds, investment funds traded on stock exchanges, much like stocks, typically tracking an index, commodity, bonds, or a mix of investment types.

12b-1 Fee

A fee that mutual funds may charge their shareholders for marketing, distribution, and service expenses.

Class A

Refers to a classification of shares that might have more voting rights or higher dividends than Class B or other classes.

Class B

Typically refers to a classification of shares or assets that have certain characteristics or rights different from Class A shares, often with fewer voting rights.