A Market Consequence of the Establishment of a Price Floor

question 12

Multiple Choice

A market consequence of the establishment of a price floor program is that price will be:

• A) too low, and an excess supply will result.
• B) too low, and a shortage will result.
• C) too high, and an excess supply will result.
• D) too high, and a shortage will result.
• E) below the market equilibrium price.

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Definitions:

Judicial Process

The series of steps and procedures followed in the legal system, including litigation and adjudication in courts.

Bilateral Negotiations

A negotiation process involving two parties directly interacting to reach an agreement or resolve disputes, without involving intermediaries.

Nonunion Setting

A workplace or employment environment where no labor union is present to represent the workers.

Formal Dispute Procedure

Structured processes and guidelines followed by organizations and employees to resolve work-related disputes or grievances.