When a Price Floor Is in Effect

question 273

Multiple Choice

When a price floor is in effect:

• A) demanders get too strong of a signal from suppliers about product availability.
• B) suppliers have no incentive to signal product availability to demanders.
• C) all of the suppliers' product is purchased at the lower price, so there is no need to signal anything to demanders.
• D) suppliers cannot signal their product availability to demanders.

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Definitions:

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A mode of natural selection where individuals with certain inherited characteristics are more likely than others to obtain mates.

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