The minimum price for a good set by the government above the equilibrium price is called a:
A) price ceiling.
B) price floor.
C) parity price ratio.
D) market-generated price.

Question

Quizplus · Accepted Answer

The minimum price set by the government to be above the equilibrium price is called a price floor. This is done to protect producers and ensure they receive a higher market price for their goods.

The Minimum Price for a Good Set by the Government