Asked by
Michelle Hanneman
on Dec 17, 2024Verified
A price floor is
A) a legal maximum on the price at which a good can be sold.
B) often imposed when buyers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price floor.
C) a source of efficiency in a market.
D) a legal minimum on the price at which a good can be sold.
Price Floor
A minimum price set by the government or other authority, below which a product or service cannot be sold.
Legal Minimum
The lowest allowed wage, price, or level for something as established by law or regulation, often applied to wages.
Good Sold
The term refers to merchandise or items that a company sells to its customers.
- Elucidate the consequences of establishing a price floor and a price ceiling on market balance.
Verified Answer
YA
Learning Objectives
- Elucidate the consequences of establishing a price floor and a price ceiling on market balance.