The Surplus Created by a Price Floor Will Likely Be

question 104

Multiple Choice

The surplus created by a price floor will likely be

• A) smaller if the good is a necessity.
• B) larger if the good is addictive.
• C) smaller if the good is a luxury.
• D) unaffected by the time that has elapsed since the price ceiling is implemented.
• E) None of the above answers is correct.

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Definitions:

Problem Solving Steps

A systematic approach to finding solutions to complex or challenging issues, typically involving understanding the problem, devising a plan, carrying out the plan, and evaluating the results.

Evaluation Skills

The ability to assess the quality, importance, or value of something through analysis and comparison.

Creative Thought

The process of generating new, original, and innovative ideas or concepts.

Preconceived Perceptions

Opinions or attitudes formed in advance without adequate information or experience.