Quizlet Price Floor

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Quizlet price floor. Start studying economics 4. A price floor is the lowest legal price a commodity can be sold at. 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.

Price floors are used by the government to prevent prices from being too low. Learn price floor with free interactive flashcards. 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. Consequences of price floors.

But this is a control or limit on how low a price can be charged for any commodity. Which of the following is a likely result of a price floor imposed on providers of a particular service. 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. If a price floor is imposed at 15 per unit when the equilibrium market price is 12 there will be.

Price floors and price ceilings. Which of the following is an accurate statement about the consequence of a binding price floor. Start studying price floors and price ceilings. A price floor is the lowest legal price that can be paid in markets for goods and services labor or financial capital.

Price floors are intended to help certain people but they have side effects that may harm others in predictable ways. Price floors are also used often in agriculture to try to protect farmers. Final exam ch. Binding price floors encourage the formation of a black market.

Like price ceiling price floor is also a measure of price control imposed by the government. Choose from 500 different sets of price floor flashcards on quizlet. Learn vocabulary terms and more with flashcards games and other study tools.