A price floor is the minimum price that is set by the government for certain services and commodities that are believed to be sold at very low prices in the market and the producers need aid.
A price floor program.
The price floor is set based on the equilibrium.
A price floor is a government or group imposed price control or limit on how low a price can be charged for a product good commodity or service.
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It tends to create a market surplus because the quantity supplied at the price floor is higher than the quantity demanded.
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The equilibrium price commonly called the market price is the price where economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change often described as the point at which quanti.
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A price floor must be higher than the equilibrium price in order to be effective.
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A price floor is a minimum price enforced in a market by a government or self imposed by a group.