2
QuizMultiple Choice

Elasticity and Incentives

Question 2 • 2102320-Economics HONORS - Edgenuity Teacher

The lowest amount a manufacturer can pay factory workers is an example of

Answer
A
an incentive.
B
a price floor.
C
a price ceiling.
D
an elastic service.

Explanation

A price floor is the lowest legal amount that can be paid for a good or service. A minimum wage sets a floor on the price of labor, so it limits how little a manufacturer can pay factory workers. The correct choice is a price floor.

AI-written and checked against the verified answer.

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