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Price floor has been found to be of great importance in the labour wage market.
Definition of floor price. The wool corporation lowered its floor price by 20 because of falling demand. Definition of floor price. Want to learn more.
Price floor is a situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply. Improve your vocabulary with english vocabulary in use from cambridge. Price floor is a price control typically set by the government that limits the minimum price a company is allows to charge for a product or service.
This control may be higher or lower than the equilibrium price that the market determines for demand and supply. Its aim is to increase companies interest in manufacturing the product and increase the overall supply in the market place. The lowest price at which a product can be sold.
A minimum price required of an item being auctioned. By observation it has been found that lower price floors are ineffective.
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