Assume an Industry Initially in Equilibrium Has a Price Floor

question 220

Multiple Choice

Assume an industry initially in equilibrium has a price floor imposed at a price above the equilibrium price. Total revenue received by the producers from sales will:

• A)​rise as a result.
• B)​rise as a result only if supply is elastic.
• C)​rise as a result only if demand is elastic.
• D)​rise as a result only if demand is inelastic.

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Definitions:

Communicating

The process of transmitting information, ideas, emotions, skills, and knowledge from one entity or person to another.

Formal Roles

Official positions or functions designated by an organization, characterized by specific responsibilities and authority.

Pooled Interdependence

A form of cooperation where different departments or groups within an organization contribute individually to a common output without the need for direct interaction.

Norming Stage

A phase of group development where members start to work together cohesively, establishing norms and structures.