Price Floor Answers
Definition: Price Floor is a government-set minimum price that buyers are required to pay for a good; a form of price control.
Example: The government set minimum wage.
1. The supplier, because they receive more revenue.
2. True. The quantity supplied exceeds the quantity demanded.
3. Nothing. The price and quantity supplied would remain at equilibrium.
Definition: Price Floor is a government-set minimum price that buyers are required to pay for a good; a form of price control.
Example: The government set minimum wage.
1. The supplier, because they receive more revenue.
2. True. The quantity supplied exceeds the quantity demanded.
3. Nothing. The price and quantity supplied would remain at equilibrium.