Suppose the Equilibrium Price of a Tube of Toothpaste Is

question 137

Multiple Choice

Suppose the equilibrium price of a tube of toothpaste is $2,and the government imposes a price floor of $3 per tube.As a result of the price floor,the

• A)demand curve for toothpaste shifts to the left.
• B)supply curve for toothpaste shifts to the right.
• C)quantity demanded of toothpaste decreases,and the quantity of toothpaste that firms want to supply increases.
• D)quantity supplied of toothpaste stays the same.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Standard Deviation

A statistical measurement that shows how much variation or dispersion exists from the average (mean), indicating how spread out the values in a data set are.

Mean

The arithmetic average of a set of numbers, calculated by adding up all the values and then dividing by the count of numbers.

Grade Equivalent

A measure indicating the school grade level of students to whom a test taker's performance is most similar.