Suppose the Equilibrium Price of a Tube of Toothpaste Is

question 137

Multiple Choice

Suppose the equilibrium price of a tube of toothpaste is $2,and the government imposes a price floor of $3 per tube.As a result of the price floor,the

• A)demand curve for toothpaste shifts to the left.
• B)supply curve for toothpaste shifts to the right.
• C)quantity demanded of toothpaste decreases,and the quantity of toothpaste that firms want to supply increases.
• D)quantity supplied of toothpaste stays the same.

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Definitions:

Interaction

The process by which two or more entities influence each other's actions; in social contexts, it involves communication and behavior among individuals or groups.

Relaxed

A state or condition of being free from tension and anxiety.

Trait Terms

Specific words or phrases used to describe consistent tendencies or patterns in an individual's behavior, emotions, and thoughts.