Suppose the Equilibrium Price of a Tube of Toothpaste Is

question 80

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,

• A)quantity demanded decreases.
• B)quantity supplied increases.
• C)there is a surplus.
• D)All of the above are correct.

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Definitions:

Innovation

The method by which a concept or innovation is transformed into a product or service that generates value or that consumers are willing to purchase.

Product Development

The process of bringing a new product or service to the market, from ideation and design through to production and launch, involving research and testing to meet consumer needs.

Triggering Event

A specific occurrence or situation that initiates a predetermined action or series of actions within a business or project context.

Start-Up Process Model

A framework outlining the step-by-step progression needed to establish a new business, from idea conception to market entry.