Explain the meaning and need for 'Price Floor'.

1.	Explain the meaning and need for 'Price Floor'.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Price Floor means that producers are not allowed to sell the <a href="https://interviewquestions.tuteehub.com/tag/good-1009017" style="font-weight:bold;" target="_blank" title="Click to know more about GOOD">GOOD</a> or service below some price <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> by the government. <br/> The <a href="https://interviewquestions.tuteehub.com/tag/need-25476" style="font-weight:bold;" target="_blank" title="Click to know more about NEED">NEED</a> for price floor arises when government finds that the equilibrium price is too low for the producers.</body></html>

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