A binding price floor is a _____ price set _____ the equilibrium price.
A)minimum;at
B)maximum;below
C)minimum;above
D)maximum;above

Question

Quizplus · Accepted Answer

A price floor is set above the equilibrium price to ensure that suppliers receive a minimum price for their goods or services. If the floor is set below the equilibrium price, it becomes irrelevant and has no effect on the market. Therefore, the correct choice would be a minimum price set above the equilibrium price, which is represented by choice C.

A Binding Price Floor Is a _____ Price Set _____

A Binding Price Floor Is a _ Price Set _