Figure 2.2.2
-Refer to Figure 2.2.2 above. An imposed price of $2.25 can be called:
A) a price ceiling.
B) a price floor.
C) a consumer-friendly price.
D) a price of equilibrium difference.

Question

Figure 2.2.2
-Refer to Figure 2.2.2 above. An imposed price of $2.25 can be called:
A) a price ceiling. 
B) a price floor. 
C) a consumer-friendly price. 
D) a price of equilibrium difference.

Quizplus · Accepted Answer

A price floor is a minimum price set by the government or a regulatory body, above the equilibrium price, which is intended to ensure that the price does not fall below a certain level.

Figure 2.2.2 -Refer to Figure 2.2.2 Above. an Imposed Price of $2.25