Which of the Following Observations Would Be Consistent with the Imposition

question 153

Multiple Choice

Which of the following observations would be consistent with the imposition of a binding price floor on a market? After the price floor becomes effective,

• A)a smaller quantity of the good is bought and sold.
• B)a larger quantity of the good is demanded.
• C)a smaller quantity of the good is supplied.
• D)the price falls below the equilibrium price.

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Definitions:

Discouraged Workers

Individuals who are not actively seeking employment due to believing there are no jobs available for them.

Marginally Attached Workers

Individuals not in the labor force who want and are available to work but have not searched for a job in the past 4 weeks, hence are not counted as unemployed in labor force statistics.

Economic Reasons

Factors or motivations grounded in economics that explain certain behaviors, decisions, or trends.