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A price floor program.
A price floor is a minimum price enforced in a market by a government or self imposed by a group.
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A price floor must be higher than the equilibrium price in order to be effective.
The equilibrium price commonly called the market price is the price where economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change often described as the point at which quanti.
The price floor is set based on the equilibrium.
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It tends to create a market surplus because the quantity supplied at the price floor is higher than the quantity demanded.
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