Suppose the Government Sets a Price Floor That Is Above

question 83

Multiple Choice

Suppose the government sets a price floor that is above the equilibrium price for a given good.It can be said that at the price floor,

• A) although sellers are selling all of the product that they desire at this price,the consumers are not able to buy all that they desire.
• B) although consumers are purchasing all of the product that they desire at this price,the sellers are not selling all that they desire.
• C) both sellers and buyers are satisfied with the quantity that is being exchanged.
• D) both sellers and buyers are exchanging the equilibrium quantity of this good.
• E) b and d

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Definitions:

Lean Philosophy

A management approach focusing on minimizing waste and maximizing value in processes by considering customer value as the primary goal.

Necessary Buffer

A strategic reserve or margin of safety to mitigate risk or unforeseen circumstances, ensuring stability and continuity.

Inventory

The items or goods a business holds for the purpose of sale or production, including raw materials, work-in-progress, and finished goods.

Setup

An overhead activity that consists of changing tooling in machines in preparation for making a new product.