Which of the following is an example of a price floor?
A)Rent controls
B)Maximum prices for gasoline
C)Usury laws that set maximum interest rates
D)The minimum wage

Question

Quizplus · Accepted Answer

The minimum wage is a government-mandated price floor in the labor market, setting a minimum wage that employers must pay to their employees. This ensures that workers get paid a certain amount, but can also lead to potential negative consequences such as increased unemployment or reduced working hours for low-skilled workers. Rent controls (A) and maximum prices for gasoline (B) are examples of price ceilings, while usury laws (C) are regulations on interest rates rather than prices.

Which of the Following Is an Example of a Price