A price floor is a government-mandated minimum price below which legal trades cannot be made. maximum price above which legal trades cannot be made. minimum price at which all units of the good must be legally sold. minimum price below which legal trades can be made.

Question

Social Studies

Boone

27 October, 06:01

A price floor is a government-mandated minimum price below which legal trades cannot be made. maximum price above which legal trades cannot be made. minimum price at which all units of the good must be legally sold. minimum price below which legal trades can be made.

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Connor Conway · Answer 1

minimum price below which legal trades cannot be made

Explanation:

Price floor are made by the government which is considered to be the lowest price that is allowed to carry any business.

They are fixed by the government from time to time to maintain a healthy economy across the country. It prevents the prices from being very low so that is does not effect the overall economy.

Price floor is generally considered to be the legally accepted price that any commodity can be sold in the market.

Thus it is the minimum price below which legal trades cannot be made.