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If the Government Establishes a Price Floor, It Must Also

Question 43

Multiple Choice

If the government establishes a price floor, it must also be prepared to


A) sell any additional goods created by the price floor
B) create ration coupons to allocate the goods among consumers
C) enter the market as an additional demander of the good
D) handle the resulting excess demand
E) create incentives for producers to remain in the market

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