Which of the following illustrates a price floor in economic terms?

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The established minimum wageLimits placed on rental pricesSetting petrol prices at Rs100 per litre when the market equilibrium is Rs150 per litreEvery option listed represents a price floor

Explanation

A price floor is a legally set minimum price that must be paid for a good or service. The minimum wage is a classic example of a price floor as it sets the lowest legal payment for labor. In contrast, rent controls and petrol price caps below equilibrium are examples of price ceilings, which set maximum prices.