Question

the general understanding of price ceiling and price floor are respectively
a. minimum and maximum price set by the government for goods and services
b. maximum and minimum price set by the government for goods and services
c. minimum and maximum price set by the labor union for goods and services
d.maximum and minimum price set by the market equilibrium

Answer 1

A price ceiling is the legal maximum price for a good or service, while a price floor is the legal minimum price. Although both a price ceiling and a price floor can be imposed, the government usually only selects either a ceiling or a floor for particular goods or services.

Answer 2

Price ceiling and Price floor are d) maximum and minimum price set by the market equilibrium.