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When a Price Floor Is in Effect

Question 207

Multiple Choice

When a price floor is in effect:


A) demanders get too strong of a signal from suppliers about product availability.
B) suppliers have no incentive to signal product availability to demanders.
C) all of the suppliers' product is purchased at the lower price, so there is no need to signal anything to demanders.
D) suppliers cannot signal their product availability to demanders.

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