The government-imposed lower limit on the price that may be charged for a particular good or service. What this lower limit is called ?

Option 1: Price ceiling -> This is an upper limit (maximum price), not a lower limit.

Option 2: Price floor -> This is the government-imposed lower limit on price, preventing it from falling below a certain level.

Option 3: Price line -> This represents a consumer's budget constraint in economics, not a price control.

Option 4: Minimum price -> While similar in meaning, 'price floor' is the standard economic terminology.

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Hence, Option 2: Price floor -> A price floor is the official economic term for a government-imposed minimum price level below which a good or service cannot be sold. Common examples include minimum wage laws (floor on labor price) and agricultural price supports. When effective, a price floor is set above the equilibrium price, potentially creating surplus as quantity supplied exceeds quantity demanded at that price. -> correct