ECONOMICS
PRICE CEILINGS AND FLOORS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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price ceiling
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price floor
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Either A or B
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None of the above
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Detailed explanation-1: -Minimum wage is an example of a price floor as the wage or the price of labour cannot go below this level.
Detailed explanation-2: -True. An example of price floors is the minimum wage law in the labour market, where government, in order to protect the suppliers and interests of laborers, mandates a wage floor or minimum wage. Q.
Detailed explanation-3: -Minimum price ceiling refers to the least price that can be paid for any good or service. Also read: Difference Between Price Ceiling and Price Floor. Market Equilibrium.
Detailed explanation-4: -The most important example of a price floor is the minimum wage. A price ceiling is a maximum price that can be charged for a product or service. Rent control imposes a maximum price on apartments in many U.S. cities.
Detailed explanation-5: -A price floor is a government-or group-imposed price control or limit on how low a price can be charged for a product, good, commodity, or service. A price floor must be higher than the equilibrium price in order to be effective. A minimum price is when the government don’t allow prices to go below a certain level.