The Price Paid by Buyers in a Market Will Decrease

question 121

Multiple Choice

The price paid by buyers in a market will decrease if the government

• A)increases a binding price floor in that market.
• B)increases a binding price ceiling in that market.
• C)decreases a tax on the good sold in that market.
• D)All of the above are correct.

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Definitions:

Purchasing Power

the value of currency expressed in terms of the amount of goods or services that one unit of money can buy.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

Business Managers

Professionals responsible for planning, directing, and overseeing operations and employees within companies.

International Business

Commercial transactions that occur across national borders, including trade, investment, and operational activities.