An Effective Price Floor

question 39

Multiple Choice

An effective price floor:

• A)must be set above the equilibrium price,and will likely cause a shortage.
• B)must be set below the equilibrium price,and will likely cause a shortage.
• C)must be set above the equilibrium price,and will likely cause a surplus.
• D)must be set below the equilibrium price,and will likely cause a surplus.

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Definitions:

Penalty

A punishment imposed for violating a rule, law, or agreement.

Negative Reinforcement

A process in operant conditioning where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Withdrawing

The act of pulling back or removing oneself from a particular situation, interaction, or engagement.

Primary Reinforcer

A stimulus that satisfies a basic need or inherently reinforces a behavior, such as food or water.