Price and quantity controls
Key Questions
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A price floor is an imposed lower limit on what price can be charged for a good or service.
The canonical example of a price floor is the minimum wage. The workers cannot charge a lower price for their work than the government-imposed minimum wage. If you want to think about it from the perspective of a company, a company cannot pay less than the minimum wage.
Kuba Dolecki
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3
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Dec 16 2014