Final exam ch.
Price floor economics quizlet.
A price floor is an established lower boundary on the price of a commodity in the market.
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Price floors are also used often in agriculture to try to protect farmers.
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Price floors and price ceilings.
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.
The lowest illegal price that can be paid for a product.
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.
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The most common price floor is the minimum wage the minimum price that can be payed for labor.
A price floor is the lowest legal price that can be paid in markets for goods and services labor or financial capital.
A price floor is the lowest legal price a commodity can be sold at.
Start studying economics chapter 6 price.
Like price ceiling price floor is also a measure of price control imposed by the government.
But this is a control or limit on how low a price can be charged for any commodity.
Price floors are used by the government to prevent prices from being too low.
A graph showing the quantity demanded at each and every price that might prevail in the market at a given time.
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Start studying unit 3 vocab economics.
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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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.
