2870EconomicsMedium
A price floor?
Asets a legal maximum on the price at which a good can be sold
Bsets a legal minimum on the price at which a good can be sold
Calways determines the price at which a good must be sold
Dis not a binding constraint if it is set above the equilibrium price
Correct answer
B. sets a legal minimum on the price at which a good can be sold
Explanation
The correct answer is sets a legal minimum on the price at which a good can be sold.