A price floor is

a maximum price set by the governmentCorrect answerYour answera minimum price set by the government, above the equilibrium priceCorrect answerYour answerthe lowest price ever chargedCorrect answerYour answerthe cost of productionCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

A floor stops the price falling below a set level, to protect producers such as farmers.

Concept: Price floor
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsPrice ceiling and price floor

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Ten questions from Market Equilibrium & Price Controls, at your own pace.

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Ten questions from Market Equilibrium & Price Controls, at your own pace.

Practise this chapter All 52 questions in Market Equilibrium & Price Controls Revise the notes for Market Equilibrium & Price Controls

A price floor is

Explanation