A Market Consequence of a Price Floor Program Is That

question 69

Multiple Choice

A market consequence of a price floor program is that:

• A) a shortage of the product will develop.
• B) producers will stop supplying the product.
• C) some rationing device must then be instituted.
• D) a surplus of the product will develop.

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Definitions:

Computer Chips

Small electronic components made of semiconductor material, used in a wide range of electronic devices to execute commands and process data.

Just-in-time

An inventory management system where materials or products are produced or acquired only as needed for use, reducing inventory costs.

Customer Demand

The desire and willingness of consumers to purchase goods or services at a particular price and time.

Distribution Center Design

The planning and layout of a facility used for the storage, handling, and distribution of goods to ensure efficient and effective supply chain operations.