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Perhaps the best known example of a price floor is the minimum wage which is based on the view that someone working full time should be able to afford a basic standard of living.

Price floor questions. 10 questions show answers. Price floors are used by the government to prevent prices from being too low. A price floor is the lowest legal price a commodity can be sold at. This quiz worksheet combination will test your understanding of price ceilings and price floors.

What does this graph show. Perhaps the best known example of a price floor is the minimum wage which is based on the normative view that someone working full time ought to be able to afford a basic standard of living. Access the answers to hundreds of price ceiling questions that are explained in a way that s easy for you to understand. Quiz questions will focus on topics such as binding price ceiling lines and the term given to how.

Get help with your price ceiling homework. A price floor is the lowest legal price that can be paid in markets for goods and services labor or financial capital. Price floors are also used often in agriculture to try to protect farmers. An effective price floor must be set above equilibrium resulting in.

The most common price floor is the minimum wage the minimum price that can be payed for labor.

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