In order for a price floor to have an impact on a market it must be set above the equilibrium price.

Question

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A price floor is a government-imposed minimum price that must be paid for a good or service. If the price floor is set below the equilibrium price, it will have no impact on the market because the market is already willing to pay a higher price than the price floor. Therefore, to have an impact, the price floor must be set above the equilibrium price, creating a price floor below which the market cannot legally trade.

In Order for a Price Floor to Have an Impact