Econ 101 Price Floor

Course video minimum wage you can find this in the video section.

Econ 101 price floor. Download this econ 101 class note to get exam ready in less time. Price floors defines minimum price price ceilings. Price floors are also used often in agriculture to try to protect farmers. The most common price floor is the minimum wage the minimum price that can be payed for labor.

For a price floor to be effective the minimum price has to be higher than the equilibrium price. Course summary economics 101. Principles of microeconomics has been evaluated and recommended for 3 semester hours and may be transferred to over 2 000 colleges and universities. Textbook chapter 6 2.

A price floor is the lowest legal price a commodity can be sold at. Price floors are used by the government to prevent prices from being too low. For example many governments intervene by establishing price floors to ensure that farmers make enough money by guaranteeing a minimum price that their goods can be sold for. The most common example of a price floor is the minimum wage.

This is a combination of news items. Terms in this set 7 price floor a price floor is a government set price above equilibrium price it is a tax on consumers and a subsidy to producers. Class note uploaded on feb 26 2015.