Price floors are used as a method to:
A) ensure buyers that goods won't be cheaper tomorrow.
B) see that production levels don't fall too low.
C) guarantee there will be enough food for everyone.
D) combat excess demand in the market.
E) ensure sellers a minimum price for their goods.

Question

Quizplus · Accepted Answer

Price floors are used to ensure that sellers get a minimum price for their goods. This is done by setting a legal minimum price above the market equilibrium price. It is often used for agricultural products or labor markets.

Price Floors Are Used as a Method To