Governments Sometime Create an Excess Demand for a Product by Setting

question 23

True/False

Governments sometime create an excess demand for a product by setting a maximum price that is less than the equilibrium price, resulting in a permanent excess demand for the product. This is known as a price floor.

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Definitions:

Monetary Cost

The financial expense associated with acquiring goods or services, or the loss of value in economic transactions.

Illness Conceptualization

The way in which an illness or disease is understood or interpreted by individuals or cultures.

Deny Symptoms

The action of not acknowledging or recognizing the physical or mental indicators of a disease or condition.

Repress Symptoms

The process of consciously or unconsciously avoiding or ignoring signs of illness or distress.