When a Government Imposes a Price Floor on a Good

question 7

Multiple Choice

When a government imposes a price floor on a good that is above the market equilibrium price

• A)a surplus will develop.
• B)a shortage will develop.
• C)producers will increase their sales price.
• D)consumers will increase their demand for the good.

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Definitions:

Electrons

Negatively charged subatomic particles found in electron clouds around an atom's nucleus, playing a key role in chemical bonds.

Germanium

A chemical element with the symbol Ge and atomic number 32, a metalloid used in semiconductors and fiber optics.

Neutrons

Neutral particles found within an atom's nucleus, not possessing any electric charge and contributing to the atom's mass.

Cobalt

A chemical element with symbol Co, known for its magnetic properties and used in alloys, batteries, and as a pigment.