If government establishes a system of price supports, it is in effect setting a

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If the government establishes a system of price supports, it is setting a price floor. Price ceilings are maximum price limits set by the government, which prevent prices from rising too high, while price supports are minimum price limits set by the government, which prevent prices from falling too low. The other options, maximum level of output and minimum level of output, are not related to price supports.

If Government Establishes a System of Price Supports, It Is