Question

To verify a price. Once you're on the Price Verify screen, just ________ the item. The item description and price will display along with options to choose from on the right.

a) Click
b) Scan
c) Type
d) Highlight

Answer 1

A price floor is a minimum price set by the government to prevent the price of a good or service from falling below a certain level.

It typically shifts the supply curve and creates a surplus in the market. In some cases, it can also shift the demand curve, but this is less common.

Step-by-step explanation:

A price floor is a minimum price set by the government for a particular good or service. It is intended to prevent the price of the good or service from falling below a certain level. Price floors are often used to protect producers and ensure they receive a fair price for their products.

A price floor typically shifts the supply curve. When the price reaches the floor, sellers are not allowed to sell below that price, which reduces the quantity supplied. This creates a surplus in the market. In the diagram, you would see a horizontal line representing the price floor, and the supply curve shifting to the left.

In some cases, a price floor can also shift the demand curve, but this is less common. It can occur when the price floor increases the perceived value of the good or service, leading to an increase in demand. However, this is not the usual outcome.