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Minimum price Think floor is the bottom which is the minimum. Think ceiling is the top which is the maximum.
Price floor is a minimum and price ceiling is a maximum.
price ceiling: A legally determined maximum price that sellers may charge.price floor: A legally determined minimum price that sellers may receive.
price floor
price floor
Minimum price Think floor is the bottom which is the minimum. Think ceiling is the top which is the maximum.
Price floor is a minimum and price ceiling is a maximum.
Price floor is a minimum and price ceiling is a maximum.
price ceiling: A legally determined maximum price that sellers may charge.price floor: A legally determined minimum price that sellers may receive.
price floor
price floor
Price floor
an example of a price floor is the minimum wage
a price floor.
A price floor is government imposed limit on how low a price can be charged for a product or service. An example of a price floor in the US are minimum wage laws. The government has set the minimum wage that a company can pay an employee.
A minimum wage could be considered a price floor because it sets a wage floor on the price of labour. Since labour is an important factor of production, and price reflects the cost of production, then higher wages correspond to higher prices if there are no productivity gains.
The minimum wage is an excellent example of a price floor