An Effective Price Floor

question 69

Multiple Choice

An effective price floor:

• A)will cause quantity demanded to exceed quantity supplied.
• B)will cause quantity supplied to exceed quantity demanded.
• C)will increase total well being.
• D)will set a legal maximum price in a market.

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Definitions:

Create

To bring something into existence or cause it to be made, often referring to innovation, construction, or design processes.

Dissolve

The formal closing or termination of an entity, such as a corporation or partnership, often involving the distribution of assets to claimants.

Administrative Agency

Any government body created by the legislative branch (e.g., Congress, a state legislature, or a city council) to carry out specific duties.

Independent Agencies

Government organizations that operate independently of the executive departments, tasked with regulating and overseeing specific areas of public policy.