A minimum permissible price established by the government is called
A) the margin price.
B) the equilibrium price.
C) a price ceiling.
D) the fair price.
E) a price floor.

Question

Quizplus · Accepted Answer

A minimum permissible price established by the government is known as a price floor. It is designed to protect producers by ensuring that the price of a good cannot fall below a certain level. The purpose of a price floor is to create a minimum price that sellers can charge, in order to encourage production and prevent prices from falling too low.

A Minimum Permissible Price Established by the Government Is Called