How do price ceilings and price floors function in markets, with an Australian context?

• A. A price ceiling is a maximum price, leading to shortages; a price floor is a minimum price, leading to surpluses. In Australia, the minimum wage acts as a price floor for labour; price ceilings have been used only rarely (e.g., temporary caps on essential goods during emergencies).
• B. A price ceiling is a minimum price; a price floor is a maximum price.
• C. Prices regulation generally does not affect market outcomes.
• D. Price controls have no real-world application in Australia.

Answer: (A)