Answer: False
Price floors are not illegal in the United States; in fact, they are used in several markets. A price floor is a minimum price set by the government for a particular good or service, aimed at ensuring that producers receive a minimum income. A common example of this is the minimum wage, which acts as a price floor for labor. Additionally, price floors are implemented in agricultural markets to help farmers maintain income levels. However, while price floors can help certain groups, they can also lead to surpluses if prices are set too high, as they create a situation where supply exceeds demand. Therefore, price floors are legal and serve specific purposes within the U.S. economy.