(Figure: Determining Surplus and Loss) In the graph, if the government sets a minimum price of $12, this is an example of a(n)

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A minimum price of $12 is a price floor, since it sets a minimum price that cannot be legally undercut. It is binding because it is set above the equilibrium price, creating a surplus of goods and causing firms to incur losses. A price ceiling, on the other hand, sets a maximum price that cannot be legally exceeded and would result in a shortage of goods. Efficient prices refer to the equilibrium price that balances supply and demand and maximizes total surplus.

(Figure: Determining Surplus and Loss) in the Graph, If the Government