What does a price floor represent in market regulation?

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It always fixes the exact price at which a product must be sold.It imposes a legal cap on the price of a product.It is ineffective if established above the market equilibrium price.It establishes a legal minimum price that a product can be sold for.

Explanation

A price floor is a government-imposed minimum price that must be paid for a good or service. It sets a legal lower limit on the price, preventing sellers from charging less than this amount.