When the minimum price that can be legally charged is above the market price, we say there is a price:

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When the minimum price that can be legally charged is above the market price, we say there is a price floor. This means that the government or some other governing body has set a minimum price for a good or service in order to protect producers or workers from receiving lower wages or income. However, a price floor can often result in a surplus of the good or service, as consumers are unwilling to pay the higher price, leading to inefficiency in the market.

When the Minimum Price That Can Be Legally Charged Is