Entity: FLOOR-PRICE
Floor price refers to the minimum price set for a product or service, ensuring it is not sold below that level. It can be established by governments or in auction settings.
FLOOR PRICE
Etymology
The term 'floor price' originates from the concept of setting a lower limit on the price of a commodity.
Definition
Floor price refers to the minimum price set for a product or service, ensuring it is not sold below that level. It can be established by governments or in auction settings.
Historical Context
The use of floor prices dates back to various economic policies aimed at stabilizing markets and protecting producers from price fluctuations.
Cultural Significance
Floor prices play a crucial role in ensuring fair compensation for producers and maintaining market stability in certain industries.
Related Concepts
Price floor, equilibrium price, market forces, auction dynamics.
See Also
A regulatory or auction-based minimum price for a product or service, preventing it from being sold below that level.