There are many teenagers who would like to work at grocery stores, but they are not hired due to minimum-wage laws. the government has instituted a legal minimum price of $3.00 per gallon for milk. the government prohibits grocery stores from selling milk for more than $2.30 per gallon.

Price floor and binding

Explanation:

If there are many teenagers who would like to work at grocery stores, but they are not hired due to minimum-wage laws, this will be an example of a price floor.

A price floor is a government imposed minimum price and because the grocery store will like to pay teenagers less, although the teenagers might be willing to accept whatever they will be offered as wages, the groceries still cannot employ them because minimum wage is binding.

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