price floor


Also found in: Dictionary, Thesaurus, Wikipedia.

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 ?
Of course this all hangs in the balance pending approval for part of the package, namely the carbon price floor compensation.
85 as the new price floor is precisely because things are on a knife edge for producers.
The natural gas market is poised to find a new, near-term price floor in 2012, with Henry Hub cash and other supply-area prices bound for $1 handles as early as later winter as mild weather has exacerbated an oversupplied market.
The gap is set to widen further in 2013 when it introduces the unilateral Carbon Price Floor.
In order to preserve the "price integrity" of tickets, an artificial price floor is in effect.
government to set a price floor on oil by having a variable import fee.
Instead, the authors merely pile on yet more recommendations, including a gasoline price floor, city carbon budgets and even personal carbon budgets.
Owner behaviour is preventing the leasing market from reaching a price floor, but they are just delaying the inevitable, indicates Landmark Advisory's Q309 Dubai and Abu Dhabi Real Estate Report.
The problem with using the Harberger triangle--the area between the demand and supply curve and between the pre- and post-control quantities--as a measure of the inefficiency resulting from, for example, a price floor is that it captures only one type of restriction-induced inefficiency: the inefficiency that arises because the market restriction prevents some mutually beneficial trades from taking place.
Meanwhile, only 14 percent said that the rise in mortgage lending in the second quarter is an indication that prices had finally hit the price floor.
ISLAMABAD, 18 March , 2009 (Balochistan Times) -- The Competition Commission of Pakistan (CCP) on Wednesday passed an order against KSE, LSE and ISE for placing/fixing a price floor on the securities traded on the respective stock exchanges and imposed penalty of Rs.
The benefits, for those that pass muster, are not insignificant: a guaranteed price floor of $1.