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If the price floor is not enforced, firms competition will force the price ______________________. back to its equilibrium to decrease to increase no change at all

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the price floor is not enforced, firms competition will force the price ______________________.

back to its equilibrium

to decrease

to increase

no change at all

Definition Video Definition Lowest legal price that can be paid in a market for goods and services, labor, or financial capital. A price floor protects a price from falling below a stipulated level. Video

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