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Suppose the Equilibrium Price of a Tube of Toothpaste Is

Question 137

Multiple Choice

Suppose the equilibrium price of a tube of toothpaste is $2,and the government imposes a price floor of $3 per tube.As a result of the price floor,the


A) demand curve for toothpaste shifts to the left.
B) supply curve for toothpaste shifts to the right.
C) quantity demanded of toothpaste decreases,and the quantity of toothpaste that firms want to supply increases.
D) quantity supplied of toothpaste stays the same.

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