What Is a Price Floor?
OpenStax defines a price floor as the lowest price that one can legally pay for a good or service.
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1.What is a price floor?
OpenStax defines a price floor as the lowest price that one can legally pay for a good or service.
2.What is the equilibrium price?
In the strawberry market both sides want 80 boxes at a price of 3.
3.In the example, a floor of 2 is set when the equilibrium price is 3. What happens?
A floor only bites when it sits above the equilibrium price.
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Sources (5)
- OpenStax, Principles of Economics 3e, Abschnitt 3.4 Price Ceilings and Price Floors
- US Department of Labor, Wage and Hour Division: Federal Minimum Wage History (Chart)
- US Department of Labor: Fair Labor Standards Act (FLSA), Uebersichtsseite
- Scottish Government: Minimum unit pricing (Alcohol and drugs)
- Eigene Berechnung (synthetischer Erdbeermarkt, Python)
Education only. Not financial advice.