Question

Define What is floor price?

Answer 1

Price floor can be said as government or a group which imposes price control or can be said as the limit on how low a price should be decided for a product to be sold. In order to take out this process effectively the price floor should be higher than the stable price.

Answer 2

Answer:

price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, good, commodity, or service. A price floor must be higher than the equilibrium price in order to be effective. ... Governments use price floors to keep certain prices from going too low.