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Price floor is a price level set by government that prohibits a price from falling below a certain level. It is rare to have a price floor unless there is a severe depression or crisis in an industry. More often government will use a [[subsidy]] to help suppliers who suffer from decreases in price.
Price floor is a price level set by government that prohibits a price from falling below a certain level. It is rare to have a price floor unless there is a severe depression or crisis in an industry. More often government will use a [[subsidy]] to help suppliers who suffer from decreases in price.
*The most common example of a price floor in the United States is minimum wage.