A price floor is:
A) a maximum price allowed by law.
B) a minimum price allowed by law.
C) able to produce an efficient outcome.
D) a tool used to increase government revenues.

Question

Quizplus · Accepted Answer

A price floor is a minimum price that is set above the equilibrium price by the government. This is done to ensure that producers get a minimum price for their goods or services, and is often used in industries with a high level of competition or where wages are low.

A Price Floor Is