A legal price floor is a
A) price set by the government at which all goods or services must be legally sold.
B) maximum price above which sales cannot legally be made.
C) minimum price below which sales cannot legally be made.
D) price above which there would be no demand.
E) price below which there would be no supply.
Correct Answer:
Verified
Q7: A binding price floor is a
A)minimum price,below
Q8: In free and competitive markets,surpluses are eliminated
Q9: Suppose the government sets a particular price
Q10: In competitive markets,price floors and price ceilings
Q11: For a price floor to be binding,it
Q13: Consider the market for iron ore,an important
Q14: A legally imposed upper limit on a
Q15: In free and competitive markets,shortages are eliminated
Q16: The price of a good or a
Q17: At any disequilibrium price,whether government controlled or
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