the.com/price floor
The law saying this thing is worth more than you're willing to pay for it.
means A legally mandated minimum price for a good or service, set above where supply and demand would naturally settle, usually to protect sellers like farmers or workers.
from Straightforward economics jargon, not ancient etymology: 'floor' here is the architectural metaphor doing the work — a floor is the lowest point you can go, the surface that stops you falling further. Pair it with 'ceiling' (price ceilings cap how high a price can legally go) and you get a tidy spatial model economists leaned on as the discipline formalized graphs and models in the 20th century. The term spread through textbooks and policy debates — minimum wage laws being the classic real-world example — because 'floor' instantly conveys 'you cannot go below this' without needing further explanation.
- creates
- surplus, because supply ignores feelings
- classic example
- minimum wage laws
- backfires when
- set above equilibrium price
- opposite of
- price ceiling, its chaos-causing sibling