-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:

Accommodation

In psychology, the process of adjusting cognitive schemas to incorporate new information.

Schemes

In Piaget’s theory, actions or mental representations that organize knowledge.

Cognitions

refer to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Mental Representations

The internal images, ideas, concepts, or symbols that are used to understand the world, solve problems, and navigate one's environment.