The Table Given Below Reports the Quantity Demanded and Supplied

question 91

Multiple Choice

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market.Table 3.5

-Which of the following is true of a price floor?

• A)A price floor allows supply and demand to function effectively.
• B)A price floor is set such that the price is not allowed to increase above a certain level.
• C)A price floor is beneficial to buyers in a market.
• D)A price floor usually creates a shortage of a good in a market.
• E)A price floor is set such that the price is not allowed to decrease below a certain level.

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Definitions:

Naturally Occurring

Referring to substances, phenomena, or processes that exist or happen without human intervention.

Polarized

A term indicating something is divided into two sharply contrasting groups or sets of opinions or beliefs.

Transmitter Substances

are chemical substances, such as neurotransmitters, that transmit nerve impulses across synapses between nerves or from nerves to muscles or organs.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.