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If Firms Are Unable to Lower Prices Because of a Legally

Question 249

Multiple Choice

If firms are unable to lower prices because of a legally mandated price floor, then:


A) firms are better off (higher profits) at the expense of consumers.
B) firms will often compete by offering higher-quality goods than consumers are willing to pay for.
C) consumers will decrease their demand due to the high prices.
D) quantity supplied will be less than quantity demanded.

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