Final exam ch.
Price floor economics quizlet.
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The lowest illegal price that can be paid for a product.
Price floors are used by the government to prevent prices from being too low.
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.
The most common price floor is the minimum wage the minimum price that can be payed for labor.
It is legal minimum price set by the government on particular goods and services in order to prevent producers from being paid very less price.
A price ceiling is the legal maximum price for a good or service while a price floor is the legal minimum price.
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Like price ceiling price floor is also a measure of price control imposed by the government.
National and local governments sometimes implement price controls legal minimum or maximum prices for specific goods or services to attempt managing the economy by direct intervention price controls can be price ceilings or price floors.
A graph showing the quantity demanded at each and every price that might prevail in the market at a given time.
Start studying unit 3 vocab economics.
A price floor is the lowest legal price that can be paid in markets for goods and services labor or financial capital.
Governments usually set up a price floor in order to ensure that the market price of a commodity does not fall below a level that would threaten the financial existence of producers of the commodity.
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A price floor is an established lower boundary on the price of a commodity in the market.
But this is a control or limit on how low a price can be charged for any commodity.
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A price floor is the lowest legal price a commodity can be sold at.
Start studying economics chapter 6 price.
