The Imposition of a Binding Price Floor on a Market

question 186

Multiple Choice

The imposition of a binding price floor on a market causes quantity demanded to be

• A)​greater than quantity supplied.
• B)​less than quantity supplied.
• C)​equal to quantity supplied.
• D)​Both (a) and (b) are possible.

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Definitions:

Labor Productivity

The output of goods and services produced per unit of labor input, often used as an indicator of economic efficiency.

Labor Force

The total number of people employed and unemployed, who are actively looking for work in an economy.

Population Growth

The growth in a population's size over a certain time frame.

Income Distribution

The way in which total income is shared among individuals or households in an economy.