If a Nonbinding Price Floor Is Imposed on a Market

question 88

Multiple Choice

If a nonbinding price floor is imposed on a market, then the

• A)quantity sold in the market will decrease.
• B)quantity sold in the market will stay the same.
• C)price in the market will increase.
• D)price in the market will decrease.

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Definitions:

Republican Governor

A governor who is a member of the Republican Party, one of the two major political parties in the United States, traditionally emphasizing limited government and free-market principles.

Economic Crisis

A situation where a country's economy experiences a sudden downturn characterized by financial instability, high unemployment rates, and decreasing GDP.

John Maynard Keynes

A British economist whose theories on government intervention in the economy and demand-side economics profoundly impacted economic policies in the mid-20th century.

Economic Depressions

Extended periods of significant decline in economic activity across the economy, marked by high unemployment, low manufacturing output, and reduced trade and commerce.