Other Things Equal, a Price Floor Will Reduce Consumer Surplus

question 100

True/False

Other things equal, a price floor will reduce consumer surplus, but it will increase producer surplus if the government buys up any surplus at the price floor.
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Definitions:

Functionalist Perspective

A viewpoint within sociology that emphasizes the role that each part of society plays in maintaining the stability and functioning of the whole.

Ethnocentrism

The tendency to view one’s own culture as superior to all others.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood in terms of their own culture, rather than judged against the criteria of another.

Sociological Imagination

C. W. Mills’s term for the ability to perceive how dynamic social forces influence individual lives.