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Definitions from WordNet

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Term: Price Floor

Description:

A price floor is a government-imposed minimum price set above the equilibrium price in a market. It is used to protect producers and workers by preventing prices from falling too low.

Senses:

• Sense 1: The minimum price level set by the government.
• Sense 2: A legal barrier preventing prices from dropping below the specified level.
• Sense 3: A mechanism used to support certain industries or prevent exploitation.

Usages:

Usage 1: In agricultural markets, a price floor may be set to ensure farmers receive fair compensation for their products.

Usage 2: The government implemented a price floor on gasoline to stabilize the industry during times of economic volatility.

Usage 3: Some argue that price floors can lead to surpluses and reduce consumer welfare.

Sample Sentences:

• Sentence 1: The price floor for wheat was set at $10 per bushel, ensuring farmers don't incur losses.
• Sentence 2: Despite the price floor, the market was still flooded with excess supply, leading to government intervention.
• Sentence 3: The price floor on apartment rentals helped protect tenants from exorbitant costs in the city.

Related Products:

Check out these related products on Amazon:

• Price Floor Economics Books
• Market Equilibrium