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Figure: Understanding Price Ceilings and Floors
-(Figure: Understanding Price Ceilings and Floors)In the graph,if the government sets a price of $75,this is an example of an:

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Use the following to answer questions 
Figure: Understanding Price Ceilings and Floors 
-(Figure: Understanding Price Ceilings and Floors)In the graph,if the government sets a price of $75,this is an example of an:

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A price of $75 set by the government is an example of an effective price floor if it is above the equilibrium price, as it prevents the price from falling below this level.

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