When a Binding Price Floor Is Imposed on a Market

question 62

Multiple Choice

When a binding price floor is imposed on a market,

• A)price no longer serves as a rationing device.
• B)the quantity demanded at the price floor exceeds the quantity that would have been demanded without the price floor.
• C)all sellers benefit.
• D)All of the above are correct.

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Definitions:

Perfect Scores

The highest possible marks achievable in a test or evaluation, indicating flawless performance.

Inductive Argument

An argument that attempts to show that its conclusion is supported by the premises even though the conclusion amplifies—it goes beyond—what the premises state.

Conclusion

The final part of something, typically a summary or decision made after considering all the presented information or evidence.

Premises

Assertions or claims considered true and form the foundational premises for a conclusion in reasoning.