A Price Floor Is

question 20

Multiple Choice

A price floor is

• A)a minimum price set by government.It causes a surplus if effective.
• B)the equilibrium price.
• C)a minimum price set by government.It causes a shortage if effective.
• D)a maximum price set by government.It causes a shortage if effective.
• E)a maximum price set by government.It causes a surplus if effective.

---

Definitions:

Existence

The state or fact of living, being present, or being real.

Mentally Incompetent Persons

Individuals who are legally recognized as unable to make certain types of decisions for themselves due to mental disability or illness.

Disaffirmed

The act of denying or rejecting a contract or agreement, typically by one who was not legally capable of giving consent at the time of the agreement.

Liability

A legal obligation or responsibility; in financial terms, it refers to debts or monetary obligations a company or individual owes to others.