A price floor means that
A) inflation is severe in this particular market.
B) sellers are artificially restricting supply to raise price.
C) government is imposing a maximum legal price that is typically below the equilibrium price.
D) government is imposing a minimum legal price that is typically above the equilibrium price.
Correct Answer:
Verified
Q178: Q179: Given a downsloping demand curve and an Q180: (Advanced analysis) The demand for commodity X Q181: Which of the following is a consequence Q182: (Consider This) Surge prices Q184: An effective price ceiling will Q185: Black markets are associated with Q186: An effective price floor will Q187: If a legal ceiling price is set Q188: Which of the following statements is true
A) create shortages of
A) induce new
A) price floors
A) force some
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