Which of the Following Is Correct When a Price Floor

question 91

Multiple Choice

Which of the following is correct when a price floor is set above the equilibrium price?

• A)quantity supplied is less than quantity demanded at the set price
• B)quantity supplied is equal to quantity demanded at the set price
• C)at the set price there will be a shortage
• D)The market price is greater than the price floor
• E)quantity supplied exceeds quantity demanded at the set price

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Definitions:

Debtor

An individual or entity that owes money to another individual or entity, known as the creditor.

Financing Statement

A document filed to give public notice that a lender has a security interest in a debtor's personal property, used in secured transactions.

Termination Statement

An amendment to a financing statement, which states that the debtor has no obligation to the secured party.

Secured Party

A creditor or lender that has an interest, typically in the form of a lien, in the collateral offered by the debtor to secure a loan or obligation.