price floor

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Related to Price Floors: Price ceiling, Consumer surplus

Price Floor

The lowest price for a good or service permitted by a government. A government may impose a price floor to protect a favored industry and/or to keep employees working at a reasonable wage. Price floors are particularly common in agriculture. Many economists believe setting price floors is economically inefficient and limits demand in the market, causing an oversupply of the controlled good or service.

price floor

the minimum PRICE that can be charged for a PRODUCT as determined by the government. Contrast PRICE CEILING. See PRICE CONTROLS, PRICE SUPPORT, MINIMUM WAGE RATE, COMMON AGRICULTURAL POLICY.
References in periodicals archive ?
L], which is a price floor defended by government stock purchases.
373 (1911) in which the Supreme Court established the rule that it is per se illegal for manufacturers to set minimum price floors for resellers of their products.
These collars cover 70 MMcf/d, with a price floor of $2.
These hedges are part of the $18 million spent by Denbury on price floors as part of the Matrix acquisition completed in July 2001.
0 million of costs associated with the price floors in accordance with Financial Accounting Standard No.
The Company's existing natural gas price floors have an average price of approximately $3.
This PV-10 value excludes any benefit that may be derived from the higher price floors that Denbury has purchased relating to this acquisition.
In order to insure a minimum rate of return on these properties, Denbury has purchased price floors (i.
Although the acquisition initially appears to have a high finding cost above our historical levels, with our price floors protecting any unforeseen commodity price weakness and the upside potential that our engineers and geologists have already identified, we expect to show an excellent rate of return on these acquisitions.
29 issued its order which requires NYNEX to calculate and be in compliance with price floors for all of its services by its third annual price cap filing on June 1, 1997.
The MPUC's decision allows BHE the management flexibility to reduce its rates to keep "at risk" business, or to attract new business, although it includes price floors that are higher than BHE had been seeking.