Final answer:
When a price floor is imposed in the market, it generally leads to a decrease in search activities. The correct option is b.
Step-by-step explanation:
When a price floor is imposed in the market, it generally leads to a decrease in search activities.
A price floor is a government-imposed minimum price that is set above the equilibrium price. This means that the price at which buyers are willing to purchase the product is lower than the price floor. As a result, there is excess supply in the market, leading to a decrease in search activities.
For example, let's consider the market for labor. If the government imposes a minimum wage that is higher than the equilibrium wage rate, employers may reduce their search activities and hire fewer workers because they cannot afford to pay the higher wage. The correct option is b.