Assume There Is a Price Floor Imposed on a Good

question 228

Multiple Choice

Assume there is a price floor imposed on a good which is above the equilibrium price. Which of the following changes would reduce the size of the surplus?

• A)​An increase in demand.
• B)​A decrease in demand.
• C)​An increase in supply.
• D)​Any of the above.

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Definitions:

Transduction

The process of converting one form of energy into another. In sensory systems, it refers to the conversion of external stimuli into nerve signals.

Sensory Adaptation

The process by which sensory receptors become less responsive to constant stimuli, allowing individuals to ignore background levels of stimulation.

Absolute Threshold

The smallest level of stimulus that can be detected by a sense, such as the faintest sound that can be identified.

Transduction

The process of converting one form of energy into another, such as converting light waves into neural signals by the sensory organs.