Q.

Which of the following is an example of a price floor?

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a

Rent control

b

Minimum wage laws

c

Subsidies

d

Tax credits

answer is B.

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Detailed Solution

An example of price floors is the minimum wage law in the labor market, where government, to protect the suppliers and interests of laborers, mandates a wage floor or minimum wage.

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Which of the following is an example of a price floor?