Answer
An example of a price floor is a minimum wage for workers in the economy. An example of a price ceiling is the control of rent prices in certain cities, which prohibits landlords from selling apartments above a certain price.
Work Step by Step
A price floor is a legal minimum on the price at which a good must be sold. If the price floor is above the equilibrium price, the market price for the good will be at the price floor.
A price ceiling is a legal maximum on the price at which a good must be sold. If the price ceiling is below the equilibrium price, the market price for the good will be at the price ceiling.
