A price floor is
A) a minimum price set by government that sellers may charge for a good.
B) a maximum price set by government that sellers may charge for a good.
C) the difference between the initial equilibrium price and the equilibrium price after a decrease in supply.
D) the minimum price that consumers are willing to pay for a good.

Question

Quizplus · Accepted Answer

A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, hence it is a minimum price set by the government that sellers may charge for a good.

A Price Floor Is