In which type of market would a government be most likely to establish a "legal" price floor?
A)housing market
B)labour market
C)diamond market
D)electricity market
E)natural gas market

Question

Quizplus · Accepted Answer

Governments are most likely to establish a legal price floor in a market where they want to ensure that workers are paid a minimum wage. This is typically the case in the labour market, where governments may set a minimum wage to ensure that workers receive a basic level of compensation for their labour. Price floors are less common in other markets, such as the housing, diamond, electricity, or natural gas markets, where prices are typically determined by market forces.

In Which Type of Market Would a Government Be Most