-If the Government Set a Price Floor at $18

question 105

Multiple Choice

-If the government set a price floor at $18

• A)there would be a temporary surplus,then prices would fall to equilibrium.
• B)the price floor would not have any effect on this market.
• C)then quantity demanded would be greater than quantity supplied.
• D)there would be a permanent surplus,at least until the price floor was lifteD.

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Definitions:

Consumer Interests

The priorities and concerns of individuals in their role as consumers, focusing on the protection and promotion of their rights and well-being.

Consumer Product Safety Commission

The Consumer Product Safety Commission is a U.S. federal agency responsible for protecting the public from risks of injury or death associated with consumer products.

Voluntarily Issuing Recalls

The process by which a company initiates a recall of a product without being compelled to do so by a government agency or court, often due to the discovery of safety issues.

Product Recalls

The process of requesting the return of a batch or production run of products, typically due to the discovery of safety issues or defects.