Examlex
How does the space between our fingers arise?
Binding Price Floor
A government or regulatory-imposed price control that sets the minimum price that can be charged for a good or service, above the equilibrium price, leading to potential surpluses.
Surplus
Surplus refers to the amount by which production, resources, or inventory exceeds what is needed or used, often resulting in excess supply.
Nonbinding Price Floor
A minimum price set by the government that is below the equilibrium price, having no effect on the market.
Minimum Wage
The lowest legal hourly wage that employers can pay to workers, set by government regulation.
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