A minimum price, set by the government, that sellers may charge for a good is known as
A) a price floor.
B) a price rationing mechanism.
C) a price ceiling.
D) a subsidy.

Question

Quizplus · Accepted Answer

A price floor is a government-imposed limit on how low a price can be charged for a product, ensuring that the price does not fall below a certain minimum level. This is often used to protect producers or farmers from prices that are too low to cover their costs.

A Minimum Price, Set by the Government, That Sellers May