Which of the Following Is Correct When a Price Floor

question 91

Multiple Choice

Which of the following is correct when a price floor is set above the equilibrium price?

• A)quantity supplied is less than quantity demanded at the set price
• B)quantity supplied is equal to quantity demanded at the set price
• C)at the set price there will be a shortage
• D)The market price is greater than the price floor
• E)quantity supplied exceeds quantity demanded at the set price

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 (impossible) and 1 (certain).

Variance

A statistical measure that represents the degree of spread or dispersion of a set of values from their mean.

Probability

The quantification of the probability that an event will happen, represented as a number ranging from 0 to 1.