Transcript
Rupert is a low-skilled worker who washes dishes in a local restaurant. A proposal to increase the minimum wage may worry him if he knows that price
a) floors tend to create shortages b) ceiling tend to create shortages c) floors tend to create surpluses d) ceiling tend to create surpluses
Question is asking a proposal to increase the minimum wage would make price
either floor or ceiling
to create shortages or surpluses
price ceiling is a legal maximum on the price at which a good can be sold
price floor is a legal minimum on the price at which a good can be sold.
a) floors tend to create shortages
this is wrong because floors create surplus
b) ceiling tend to create shortages It is correct.
But the question is asking a proposal to increase the minimum wage would make price either floor or ceiling to create shortages or surpluses
price ceiling is a legal maximum price is it’s wrong
c) floors tend to create surpluses floors create surpluses. It’s correct. The question is asking a proposal to
increase the minimum wage would make price either floor or ceiling to create shortages or surpluses
price floor is a legal minimum price This is the right answer
d) ceiling tend to create surpluses
ceiling create shortages.
So it’s incorrect
top related