price floor are less common than price floor. why?
Answers
ᴛʜᴇ ɪᴍᴘᴏꜱɪᴛɪᴏɴ ᴏꜰ ᴀ ᴘʀɪᴄᴇ ꜰʟᴏᴏʀ ᴏʀ ᴀ ᴘʀɪᴄᴇ ᴄᴇɪʟɪɴɢ ᴡɪʟʟ ᴘʀᴇᴠᴇɴᴛ ᴀ ᴍᴀʀᴋᴇᴛ ꜰʀᴏᴍ ᴀᴅᴊᴜꜱᴛɪɴɢ ᴛᴏ ɪᴛꜱ ᴇQᴜɪʟɪʙʀɪᴜᴍ ᴘʀɪᴄᴇ ᴀɴᴅ Qᴜᴀɴᴛɪᴛʏ, ᴀɴᴅ ᴛʜᴜꜱ ᴡɪʟʟ ᴄʀᴇᴀᴛᴇ ᴀɴ ɪɴᴇꜰꜰɪᴄɪᴇɴᴛ ᴏᴜᴛᴄᴏᴍᴇ.ᴘʀɪᴄᴇ ᴄᴏɴᴛʀᴏʟꜱ ᴄᴏᴍᴇ ɪɴ ᴛᴡᴏ ꜰʟᴀᴠᴏʀꜱ. ᴀ ᴘʀɪᴄᴇ ᴄᴇɪʟɪɴɢ ᴋᴇᴇᴘꜱ ᴀ ᴘʀɪᴄᴇ ꜰʀᴏᴍ ʀɪꜱɪɴɢ ᴀʙᴏᴠᴇ ᴀ ᴄᴇʀᴛᴀɪɴ ʟᴇᴠᴇʟ (ᴛʜᴇ “ᴄᴇɪʟɪɴɢ”), ᴡʜɪʟᴇ ᴀ ᴘʀɪᴄᴇ ꜰʟᴏᴏʀ ᴋᴇᴇᴘꜱ ᴀ ᴘʀɪᴄᴇ ꜰʀᴏᴍ ꜰᴀʟʟɪɴɢ ʙᴇʟᴏᴡ ᴀ ᴄᴇʀᴛᴀɪɴ ʟᴇᴠᴇʟ (ᴛʜᴇ “ꜰʟᴏᴏʀ”).ᴘʀɪᴄᴇ ᴄᴏɴᴛʀᴏʟꜱ ᴄᴀɴ ʙᴇ ᴘʀɪᴄᴇ ᴄᴇɪʟɪɴɢꜱ ᴏʀ ᴘʀɪᴄᴇ ꜰʟᴏᴏʀꜱ. ᴀ ᴘʀɪᴄᴇ ᴄᴇɪʟɪɴɢ ɪꜱ ᴛʜᴇ ʟᴇɢᴀʟ ᴍᴀxɪᴍᴜᴍ ᴘʀɪᴄᴇ ꜰᴏʀ ᴀ ɢᴏᴏᴅ ᴏʀ ꜱᴇʀᴠɪᴄᴇ, ᴡʜɪʟᴇ ᴀ ᴘʀɪᴄᴇ ꜰʟᴏᴏʀ ɪꜱ ᴛʜᴇ ʟᴇɢᴀʟ ᴍɪɴɪᴍᴜᴍ ᴘʀɪᴄᴇ. ... ᴡʜᴇɴ ᴘʀɪᴄᴇꜱ ᴀʀᴇ ᴇꜱᴛᴀʙʟɪꜱʜᴇᴅ ʙʏ ᴀ ꜰʀᴇᴇ ᴍᴀʀᴋᴇᴛ, ᴛʜᴇɴ ᴛʜᴇʀᴇ ɪꜱ ᴀ ʙᴀʟᴀɴᴄᴇ ʙᴇᴛᴡᴇᴇɴ ꜱᴜᴘᴘʟʏ ᴀɴᴅ ᴅᴇᴍᴀɴᴅᴛʜᴜꜱ, ᴀ ᴘʀɪᴄᴇ ꜱᴜᴘᴘᴏʀᴛ ɪꜱ ᴅɪꜰꜰᴇʀᴇɴᴛ ꜰʀᴏᴍ ᴀ ᴘʀɪᴄᴇ ꜰʟᴏᴏʀ ʙᴇᴄᴀᴜꜱᴇ, ᴡɪᴛʜ ᴀ ᴘʀɪᴄᴇ ꜰʟᴏᴏʀ, ᴀɴʏ ᴇxᴄᴇꜱꜱ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ʙʏ ꜱᴇʟʟᴇʀꜱ ɪꜱ ᴀ ʙᴜʀᴅᴇɴ ᴏɴ ᴛʜᴇ ꜱᴇʟʟᴇʀꜱ. ɪɴ ᴄᴏɴᴛʀᴀꜱᴛ, ᴡɪᴛʜ ᴀ ᴘʀɪᴄᴇ ꜱᴜᴘᴘᴏʀᴛ, ᴀɴʏ ᴇxᴄᴇꜱꜱ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ɪꜱ ᴀ ʙᴜʀᴅᴇɴ ᴏɴ ᴛʜᴇ ɢᴏᴠᴇʀɴᴍᴇɴᴛ.