When government sets a price floor in a market, government establishes a __________ price.

Question

Quizplus · Accepted Answer

When government sets a price floor in a market, it establishes a minimum price. This minimum price is typically set above the equilibrium price, meaning that buyers are required to pay more for the product than they would in an unregulated market. The intention behind a price floor is generally to benefit producers, such as farmers or minimum wage workers, by ensuring that they receive a certain level of income for their goods or services.

When Government Sets a Price Floor in a Market, Government