A price floor is a price
A) below which a seller cannot legally sell.
B) that creates a shortage of the good if it is set above the equilibrium price.
C) above which a seller cannot legally sell.
D) Both answers A and C are correct.
E) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

A price floor is a minimum price set by the government or a regulatory body, below which a seller cannot legally sell a good or service. This is designed to protect producers or sellers by ensuring they receive a minimum price for their goods or services.

A Price Floor Is a Price