Assume a Price Floor Is Imposed at the Current Equilibrium

question 233

Multiple Choice

Assume a price floor is imposed at the current equilibrium price in the market for lettuce.If the demand for lettuce then increases:

• A)a surplus of lettuce will be created.
• B)a shortage of lettuce will be created.
• C)the quantity of lettuce traded remains the same.
• D)the quantity of lettuce supplied will increase.
• E)the quantity of lettuce supplied will decrease.

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Definitions:

Naturally Occurring Retirement Community

A community not originally designed for seniors, but that has a large proportion of residents who are retired individuals living independently.

Assisted Living

A residential option for elderly individuals who need some help with daily activities but do not require full-time care.

Empty Nest

The time in the lives of parents when their children have left the family home to pursue their own lives.

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A mechanic who is a member of a labor union, which provides certain protections, benefits, and collective bargaining power regarding their work conditions and wages.