The most likely reason that the government would implement a _____ is because it feels that the price is too low for _____.
A)price ceiling;consumers
B)price floor;consumers
C)price ceiling;producers
D)price floor;producers

Question

Quizplus · Accepted Answer

A price floor is a minimum price set by the government above the equilibrium price. This is typically done to protect producers, as they may feel that the market price is too low for them to make a profit. Thus, the most likely reason that the government would implement a price floor is because it feels that the price is too low for producers.

The Most Likely Reason That the Government Would Implement a _____