price floor - Related Articles
Private Investments in Public Equity
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Price floor A legal minimum price below which a good or service may not be sold. Legal minimum wages are an example.
price floor a government price control that sets the minimum allowable price for a good. (3)
price leader the price-setting firm in a collusive industry where other firms follow the leader. (11) ...
Price floor - A government imposed minimum permissible price at which a product may be sold.
Price index - A measure of the average level of prices in one period as a percentage of their level in an earlier period.
PRICE FLOOR: A legally established minimum price. Pressured by special interest groups, our beloved government is often convinced that the price of a good needs to be kept at a higher level.
Effects of a Price Floor
Fair trade opponents such as the Adam Smith Institute claim that similar to other farm subsidies, ...
Price floor
A government-imposed lower limit on the price that may be charged for a product. If that limit is binding, it implies a situation of excess supply, which the government may need to purchase itself to keep price from falling.
Definition: A price floor set by a government or other agency below which the price charged is not permitted to fall.
Related glossary term:
Maximum price ...
Price floors, which prohibit prices below a certain minimum, cause surpluses, at least for a time. Suppose that the supply and demand for wheat flour are balanced at the current price, and that the government then fixes a lower maximum price.
Black (1976) option pricing formula Used to price floors, among other things.
cap A type of derivative instrument that offers protection against rising interest rates.
economic concept utilized by governmental units establishing a fixed price for a price floor (below which the price is not legally allowed to fall) and price ceilings (above which the price is not legally allowed to rise) on certain regulated goods ...
Price ceilings (such as price controls and rent controls), price floors (such as minimum wage and living wage laws) and taxation are all said to create deadweight losses. Deadweight loss occurs when supply and demand are not in equilibrium.
Price support
Government intervention to set an artificially high price through the use of a price floor designed to aid producers.
Price takers
Individuals who respond to rates and prices by acting as though prices have no influence on them.
Government intervention to set an artificially high price through the use of a price floor designed to aid producers.
Price takers
Individuals who respond to rates and prices by acting as though prices have no influence on them.
support level: Real or artificial price floor in technical analysis that when overcome signify a new downward trading trend.
 See also: Equilibrium, Population, Perfect competition, Banks, Expense
  
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