This business economics assignment explores several key concepts, including price floors, perfect competition, and Gross Domestic Product (GDP). The solution analyzes the impact of price floors on market equilibrium, illustrating the effects on consumer and producer surplus, and discussing the welfare loss associated with government intervention. It also examines the characteristics of a perfectly competitive market, differentiating between short-run and long-run equilibrium, and explaining how firms make decisions in response to market prices. Furthermore, the assignment addresses GDP and economic growth, defining GDP, outlining its components, and discussing its limitations as a measure of well-being. It also explores factors contributing to sustained GDP increases and differentiates between nominal and real values. The short-answer questions address the effects of increased demand, demand elasticity, and the distinction between normal and inferior goods. Overall, this assignment provides a comprehensive overview of fundamental economic principles and their real-world applications.