Suppose a Market Is in Equilibrium and Then a Price

question 123

Multiple Choice

Suppose a market is in equilibrium and then a price floor is established below the equilibrium price.Which of the following will happen?

• A)quantity demanded will increase
• B)a surplus will develop
• C)a shortage will develop
• D)the quantity sold will rise
• E)the market will remain in equilibrium

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Definitions:

Indirect Approach

A method of communication where the main point is not stated directly at the beginning but revealed gradually.

Evidence

Information or facts used to support a claim, argument, or conclusion.

Main Idea

The central concept or primary point being discussed or communicated.

Channel

A medium through which information, entertainment, or communication is transmitted or distributed.