A __________ is a government-set __________ price that can be charged for a product or service. price floor; maximum price ceiling: maximum subsidy; maximum tax; minimum none of these answers are correct
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A price floor is a minimum price set by the government, while a price ceiling is a maximum price set by the government. A subsidy is a payment made by the government to producers, and a tax is a payment made to the government. Show more…
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A price floor is a regulation that makes it illegal to: - charge a price lower than a specified level. - charge a price higher than a specified level. - offer more than a specified quantity of a good or service for sale. - offer less than a specified quantity of a good or service for sale.
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A price ceiling is a legal maximum on the price at which a good can be sold. often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling. All of the above are correct.
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A price floor means that: inflation is severe in this particular market. sellers are artificially restricting supply to raise price. government is imposing a maximum legal price that is typically below the equilibrium price. government is imposing a minimum legal price that is typically above the equilibrium price.
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