If a Binding Price Floor Were Placed in the Market

question 37

Multiple Choice

If a binding price floor were placed in the market in the graph shown:

• A) quantity demanded would exceed quantity supplied.
• B) quantity supplied would exceed quantity demanded.
• C) the demand curve would have to shift.
• D) the supply curve would have to shift.

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Definitions:

Connectedness

The state or feeling of being connected and having close relationships with others.

Closure

A psychological term referring to an individual's desire for a firm answer to a question and an aversion toward ambiguity.

Ocean

A large body of saltwater that covers approximately 71% of the Earth's surface, subdivided into five major oceans.

Binocular Cue

A visual signal that requires the coordination of both eyes to perceive depth and distance.