Question

The graph shown above shows how the price of video games varies with the demand quantity. suppose that the price of video games is set at $100 and not allowed to decrease. this is a example of a ______

price floor

price ceiling

Answer 1

This is an example of price floor. I hope this helps :)

Answer 2

Price floor

Explanation:

The price floor is the legal price that has been paid by the customer in the market. The best example of the price floor is low wages. The price floor is something like to support the price because it could not make the price fall. Even it prevents the price from falling. Many countries support this law to supports the agriculture of their country. The price floor does not change the needs of supply. It simply set a charge that is charged from the public from the bases of that price. The price floor usually unintended to consequences.