-A price floor is
A) a legal price of zero that can be charged for a good or service.
B) usually equal to the equilibrium price established before the government imposed the price floor.
C) the highest possible legal price that can be charged for a good or service.
D) almost always equal to the price ceiling.
E) the lowest legal price at which a good or service can be traded.

Question

-A price floor is
A) a legal price of zero that can be charged for a good or service. 
B) usually equal to the equilibrium price established before the government imposed the price floor. 
C) the highest possible legal price that can be charged for a good or service. 
D) almost always equal to the price ceiling. 
E) the lowest legal price at which a good or service can be traded.

Quizplus · Accepted Answer

A price floor is the minimum legal price at which a good or service can be sold. It is set above the equilibrium price to ensure that the price does not fall below a certain level, often to protect producers.

-A Price Floor Is