The Imposition of a Binding Price Floor on a Market

question 102

Multiple Choice

The imposition of a binding price floor on a market

• A)causes quantity demanded to be greater than quantity supplied.
• B)causes quantity demanded to be less than quantity supplied.
• C)causes quantity demanded to be equal to quantity supplied.
• D)causes a decrease in demand.

Understand the major expenditures and sources of tax revenue for state governments.

Understand the concept of scarcity and its implications for production, consumption, and economic choices.

Differentiate between positive and normative statements in economics.

Recognize the role and impact of resource allocation through the production possibilities curve and budget lines.

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Definitions:

Sales Contracts

Legal agreements between buyers and sellers detailing the terms and conditions of a sale, including price, delivery, and product specifications.

Commercial Unit

A term used in law referring to goods or property that are considered a single whole for purposes of sale or lease, often due to their interconnectedness or the context of their use.

Bales of Hay

Compacted, bound, and often wrapped bundles of hay used for feeding livestock, as bedding, or for agricultural purposes.

Accepted

Acknowledgment or agreement to the terms of an offer, thereby creating a binding contract.