Which Statement(s) Is TRUE? Price Floors Set Above the Equilibrium

question 141

Multiple Choice

Which statement(s) is TRUE? Price floors set above the equilibrium price cause:
I. shortages.
II. surpluses.
III. deadweight losses.

• A) I and III only
• B) II and III only
• C) III only
• D) I is true if demand is elastic; however, II is true if demand is inelastic.

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Definitions:

Proportion

A part, share, or number considered in comparative relation to a whole, often expressed as a fraction or percentage.

Unknown Quantities

Variables or values in mathematics and science that are not known and need to be solved for in an equation or experiment.

Proportion

A statement that two ratios or fractions are equal.

Unknown Quantities

Variables in mathematical equations or problems that are yet to be determined or solved for.