Question

Which of the following is a correct statement? a. Rent control is an illustration of a price floor and the minimum wage is an illustration of a price ceiling. b. Rent control is an illustration of a price ceiling and the minimum wage is an illustration of a price floor. c. Rent control and the minimum wage are both illustrations of price ceilings. d. Rent control and the minimum wage are neither illustrations of price floors nor price ceilings. e. Rent control and the minimum wage are both illustrations of price floors.

Answer 1

From the group of choices provided the correct option is letter "b".

Step-by-step explanation:

Rent control is an illustration of a price ceiling because it sets the maximun price that a landlords can charge tennants. And the minimum wage is an illustration of a price floor, because it represents the minimum amount that can be charged for a product, good or service.