Quizlet Price Floor

Consequences of price floors.

Quizlet price floor.

The federal minimum wage at the. Learn vocabulary terms and more with flashcards games and other study tools. Price floors are also used often in agriculture to try to protect farmers. Start studying economics 4.

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. 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 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. Which of the following is a likely result of a price floor imposed on providers of a particular service. If a price floor is imposed at 15 per unit when the equilibrium market price is 12 there will be. Learn price floor with free interactive flashcards.

Binding price floors encourage the formation of a black market. Price floors and price ceilings. Learn vocabulary terms and more with flashcards games and other study tools. A price floor is the lowest legal price a commodity can be sold at.

Final exam ch. Productive inefficiency the high price allows inefficient firms with high costs of production to stay in buisness. Which of the following is an accurate statement about the consequence of a binding price floor. Price floors are intended to help certain people but they have side effects that may harm others in predictable ways.

Choose from 500 different sets of price floor flashcards on quizlet. They don t face incentives to cut costs by using more efficient production methods because the high price offers them protection from lower cost competitors. 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.