A Price Floor Is A Legally Mandated

A price floor is a government mandated a.

A price floor is a legally mandated.

In the first graph at right the dashed green line represents a price floor set below the free market price. Having repealed the taxes on tacos and bungee straps the shady valley government has decided to impose price controls on both markets. Minimum price below which legal trades can be made. Minimum price below which legal trades cannot be made.

A price floor could be set below the free market equilibrium price. Perhaps the best known example of a price floor is the minimum wage which is based on the view that someone working full time should be able to afford a basic standard of living. The minimum wage is a legally mandated price floor on hourly wages below which non. A price ceiling is the legal maximum price for a good or service while a price floor is the legal minimum price.

In this case the floor has no practical effect. A price floor is the lowest price that one can legally charge for some good or service. A price floor is a legally mandated minimum price imposed on a market. The government has mandated a minimum price but the market already bears and is using a higher price.

Minimum price at which all units of the good must be legally sold. A minimum wage is the lowest wage per hour that a worker may be paid as mandated by federal law.