Price Floor
/ˈpraɪs flɔːr/
Definitions
- (n.) A legally mandated minimum price set above the market equilibrium that sellers cannot undercut.
The government imposed a price floor on wheat to protect farmers' incomes.
Forms
- price floor
- price floors
Related terms
See also
Commentary
When drafting, clearly specify the scope and enforcement mechanism of a price floor to avoid ambiguity in regulatory applications.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.