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

Price floor.

The correct answer is Option (2) → Price floor.

A price floor is a minimum legal price set by the government below which a good or service cannot be sold.

• It is a lower limit on price, usually imposed to protect producers (e.g., farmers) from very low market prices.

• Example: The Minimum Support Price (MSP) for crops in India is a classic example of a price floor.

In contrast:

• A price ceiling is the upper limit on price (e.g., rent control).