Floor Price Means
Its aim is to increase companies interest in manufacturing the product and increase the overall supply in the market place.
Floor price means. A price floor must be higher than the equilibrium price in order to be effective. Definition of floor price. 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.
The lowest preconceived price that a seller will accept. This control may be higher or lower than the equilibrium price that the market determines for demand and supply. Improve your vocabulary with english vocabulary in use from cambridge.
The lowest price at which a product can be sold. A minimum price required of an item being auctioned. A lower limit set by a government on the price that can be charged for a product or service.
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.