price floor
nounUK /ˈpraɪs flɔː/
US /ˈpraɪs flɔːr/
A price floor is the lowest price that is allowed for something.
The government set a price floor on milk so farmers would not earn too little.
OTHER MEANINGS
2. A rule that stops a price from going below a certain level.
The price floor kept ticket prices from dropping too low.
3. In economics, a legal minimum set above the natural market price.
A price floor above equilibrium can create a surplus of goods.
4. A lower limit on what someone can charge for a product or service.
The union agreed to a price floor for its members' work.