Question

An example of a price floor is __________. a. rent control. b. the regulation of gasoline prices in the U.S. c. in the 1970s. any restriction on price that leads to a shortage. d. the minimum wage.

Answer 1

Option D

An example of a price floor is the minimum wage.

Explanation:

A price floor is the most economical price that one can lawfully settle for remarkable goods or assistance. Possibly the best-known case of a price floor is the minimum wage, which is based on the way that someone running the whole time should be capable to yield a necessary standard of living.

Price floors are seldom termed as “price supports,” because they promote a price by restricting it from dropping under a certain level. When a price floor is fixed beyond the equilibrium price, the quantity provided will exceed the quantity required, and excess supply or excesses will result.

Answer 2

(D) The minimum wage

Explanation:

Price Floor:It can be defined as the minimum price paid/imposed by government for a particular product or service

For Example: Minimum wage is the price that the employer pay to the labor .As per the federal government rule the Minimum Wage in the year 2016 is  $7.25 per hour.