A Nonbinding Price Floor (I)causes a Surplus

question 285

Multiple Choice

A nonbinding price floor (i) causes a surplus.
(ii) causes a shortage.
(iii) is set at a price above the equilibrium price.
(iv)
Is set at a price below the equilibrium price.

• A) (iii)only
• B) (iv)only
• C) (i)and (iii)only
• D) (ii)and (iv)only

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Definitions:

Marketers

Professionals or organizations that engage in activities designed to identify, anticipate, and satisfy customer needs profitably.

Transactional Cost

The expenses incurred during a trade or deal, including costs of information, negotiation, and enforcement of contracts.

Special Occasion

Events or dates that hold particular significance and often call for celebration or recognition, which can influence consumer behavior.

Personal Needs

Fundamental requirements or desires that individuals seek to fulfill, such as food, safety, or love, which can significantly influence consumer behavior.