If a Price Floor Is Not Binding, Then

question 144

Multiple Choice

If a price floor is not binding, then

• A)​the equilibrium price is above the price floor.
• B)​the equilibrium price is below the price floor.
• C)​there will be a surplus in the market.
• D)​Both (a) and (c) are correct.

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Definitions:

Supply Chain

The entire system comprising people, organizations, resources, processes, and technology responsible for bringing a product from its raw material state, through manufacturing, to its final delivery to the consumer.

Demand Forecasts

are predictions about future consumer demand for products or services, based on historical data, market trends, and analysis, used for planning purposes.

Consumer Demand

Consumer demand refers to the desire and ability of purchasers to acquire goods or services at a given price.

Supply Chain

The entire network of entities, directly or indirectly, fulfilling customer requests, including manufacturers, suppliers, transporters, warehouses, retailers, and customers themselves.