A price floor is
A) a minimum price set by government that sellers must charge for a good.
B) a maximum price set by government that sellers may charge for a good.
C) the difference between the initial equilibrium price and the equilibrium price after a decrease in supply.
D) the minimum price that consumers are willing to pay for a good.

Question

Quizplus · Accepted Answer

A price floor is a minimum price set by government that sellers must charge for a good. This is often done to protect the incomes of producers or to ensure a minimum standard of living for workers in specific industries.

A Price Floor Is