Which of the Following Products Is Most Likely to Have

question 116

Multiple Choice

Which of the following products is most likely to have an inverted C-shaped demand curve?

• A)Visit to the dentist
• B)Eternity perfume
• C)Starbucks coffee
• D)Pillsbury cake mix
• E)Ford Escape

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Definitions:

Price Floor

A government or group-imposed price control that sets the lowest legal price a commodity can be sold at.

Government

The organization or system through which a community, state, or nation is governed and regulatory and administrative functions are conducted.

Binding Price Floor

A binding price floor is a government-imposed limit on how low a price can be charged for a product or service, set above the equilibrium price, leading to potential surpluses.

Surplus

The excess of supply over demand in a market, resulting in lower prices.