When a Price Floor That Has an Impact Is Removed,which

question 167

Multiple Choice

When a price floor that has an impact is removed,which of the following statements is correct?

• A)Price of the good increases.
• B)Quantity supplied for that good decreases.
• C)Demand for that good increases.
• D)None of these choices are correct.

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Definitions:

Stock Price

The current price at which shares of a particular company can be bought or sold in the stock market.

Net Profit

The amount of money a company earns after subtracting all expenses, taxes, and costs from its total revenue.

Upside Price Movement

The potential increase in the price of an asset or security from its current level.

Bull Spread

An options strategy aiming to profit from a moderate increase in the price of the underlying asset.