Price Ceilings, Price Floors, and Black Markets

5. Consumer and Producer Surplus; Price Ceilings and Floors / Price Ceilings, Price Floors, and Black Markets / Problem 3

Problem 3

What is a price floor?

The equilibrium price in a market.

A legal maximum price that can be charged for a good or service.

A legal minimum price that can be charged for a good or service.

A price set by consumers to minimize cost.