Suppose the government believes that the equilibrium price established on the market by the forces of supply and demand is too low and, to correct it, sets a minimum price. That is to say, price is allowed to be higher, but it cannot be lower than that minimum. Economists call that minimum price a(n)
A) price ceiling
B) price floor
C) parity price
D) deficiency price
E) equilibrium price
Correct Answer:
Verified
Q40: A price floor is a
A) fixed point
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