Which of the Following Is True Regarding a Price Support

question 136

Multiple Choice

Which of the following is true regarding a price support set above the equilibrium price?
i.The price support increases the price consumers pay.
ii.The price support creates a deadweight loss.
iii.The price support decreases output.

• A) i and ii
• B) i and iii
• C) iii only
• D) i, ii, and iii
• E) i only

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Definitions:

Hours

Units of time equal to 60 minutes, often used to measure work or billing time in various contexts.

Fair Labor Standards Act

A U.S. law that sets out various labor regulations regarding interstate commerce employment, including minimum wages, requirements for overtime pay, and limitations on child labor.

Gross Earnings

The total income earned by an individual or company before deductions such as taxes and retirement contributions.

Regular Earnings

Income received from standard work hours or salary, excluding overtime or bonuses.