Price Floors Create All Of The Following Except

Price floors are sometimes called price supports because they support a price by preventing it from falling below a certain level.

Price floors create all of the following except. For example the uk government set the price floor in the labor market for workers above the age of 25 at 7 83 per hour and for workers between the ages of 21 and 24 at 7 38 per hour. Around the world many countries have passed laws to create agricultural price supports. The increase in the minimum wage in puerto rico in 1938 did not affect puerto rico s unemployment rate. Price floors are also used often in agriculture to try to protect farmers.

Upgrade to remove ads. Log in sign up. All of the following are problems associated with price ceilings except. Price floors are used by the government to prevent prices from being too low.

Price floors would create all of the following effects except. Costs of price ceilings refer to the figure. Any employer that pays their employees less than the specified. O wasteful decreases in product quality.

Question 8 price floors would create all of the following effects except o misallocation of resources. The most common price floor is the minimum wage the minimum price that can be payed for labor. A misallocation of resources. Price floors and black markets.

A price floor is the lowest legal price a commodity can be sold at. Lost gains from trade. Wasteful decreases in product quality. The price floors are established through minimum wage laws which set a lower limit for wages.

Price floors create all of the following effects except. Price floors would create all of the following effects except surpluses misallocation of resources.