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What is the difference between a price floor and a price ceiling? a. A price floor is the minimum price allowed for a good. A price ceiling is the maximum price allowed for a good. b. A price floor is
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What is the difference between a price floor and a price ceiling?

a. A price floor is the minimum price allowed for a good. A price ceiling is the maximum price allowed for a good.
b. A price floor is the maximum price allowed for a good. A price ceiling is the minimum price allowed for a good.
c. A price ceiling below the equilibrium price has no effect.
d. A price floor above the equilibrium price has no effect.

User Henrik Carlqvist
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2 Answers

1 vote
1 vote

Answer: The correct answer is A

User Evan Frisch
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2 votes
2 votes

Hi there, mate!

Answer:

a. A price floor is the minimum price allowed for a good. A price ceiling is the maximum price allowed for a good.

Step-by-step explanation:

As the name suggests, a price floor is the lowest amount of money the price of a good can be. For example, if you were selling a dress, there is a price floor. There is also a price ceiling. You can not go over the price ceiling if you want to get more customers. So, the answer to the question is option A.

User Chawin
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