A Price Floor Is a Costly and Commonly Used Mechanism

question 47

Multiple Choice

A price floor is a costly and commonly used mechanism for:

• A) restraining excess supply.
• B) restraining excess demand.
• C) counteracting the effects of falling productivity.
• D) counteracting the effects of rising productivity.

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Definitions:

Partnering Relationships

Collaborative agreements between two or more organizations to achieve common goals, emphasizing mutual benefits and shared success.

Purchasing Strategy

The planned approach of an organization in acquiring goods and services needed for its operations, which takes into account factors like cost, quality, and supplier relationships.

Supply-Chain Management

Involves the strategic planning and execution of supply chain operations, focusing on optimizing cost, quality, and delivery to enhance customer value.

Compete

To strive against others for the purpose of achieving a goal, such as winning a market share or achieving a business objective.