what is the difference between a price floor and a price ceiling? a price floor is the minimum price allowed…
what is the difference between a price floor and a price ceiling? a price floor is the minimum price allowed for a good. a price ceiling is the maximum price allowed for a good. a price floor is the maximum price allowed for a good. a price ceiling is the minimum price allowed for a good. a price ceiling below the equilibrium price has no effect. a price floor above the equilibrium price has no effect.
Answer
Answer:
A. A price floor is the minimum price allowed for a good. A price ceiling is the maximum price allowed for a good.
Brief Explanations:
A price floor sets a lower - bound price, while a price ceiling sets an upper - bound price for a good. A price ceiling below equilibrium restricts price, and a price floor above equilibrium restricts price too, contrary to the incorrect statements in other options.