Economics 101: Price Floor | SterlingTerrell.net

Economics 101: Price Floor


What is a price floor in economics?

A Price Floor is a price control that forbids, by law, that a price not go below a certain point.

The result of price floors are surpluses.

And a good example of price floors are minimum wage laws.

This is why there are many times complaints of unemployment (a labor surplus) among low-skilled workers.