A Price Floor Means That. Want to learn more. A lower limit set by a government on the price that can be charged for a product or service.
A price floor is the lowest amount at which a good or service may be sold and still function within the traditional supply and demand model. This means that a lot of inventory will. Can be equal above or below the price floor.
Price floors are also used often in agriculture to try to protect farmers.
Price floor has been found to be of great importance in the labour-wage market. Sellers cannot charge a price lower than the price floor. A price floor is a minimum price enforced in a market by a government or self-imposed by a group. A price floor is an established lower boundary on the price of a commodity in the market.