Apr 21 2012

Price floor

Published by at 8:11 pm under

A minimum price set by the government, usually above the equilibrium price, meant to increase the price that producers receive for their output. An effective price floor leads to a disequilibrium in the market in which the quantity supplied is greater than the quantity demanded (surplus)

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author

Comments Off on Price floor

Comments are closed at this time.