3
QuizMultiple Choice

Profit

Question 3 of 10 • TX-Economics Chamberlain P4 T1

What is the difference between a price floor and a price ceiling?

Answer
A
A price floor is the minimum price allowed for a good. A price ceiling is the maximum price allowed for a good.
B
A price floor is the maximum price allowed for a good. A price ceiling is the minimum price allowed for a good.
C
A price ceiling below the equilibrium price has no effect.
D
A price floor above the equilibrium price has no effect.
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