Statement I: a Price Floor Will Always Have an Effect

question 103

Multiple Choice

Statement I: A price floor will always have an effect on a market.
Statement II: A price ceiling which has been set above equilibrium will cause a shortage.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Long-Term Memory

The segment of the memory system responsible for storing information over extended periods, from hours to a lifetime.

Traumatic Experience

An emotional or psychological response to an event or circumstance that is deeply disturbing or distressing.

Memory

The capability of the mind to retain and recall information.

Repression

A defense mechanism where unwanted thoughts and feelings are unconsciously excluded from consciousness.