Price floor can be used by policy makers to keep the price of beef from getting too high.
A price floor is a restriction on how low a price can be imposed for a good, item, or service that is set by the government or another party. To be effective, a price floor needs to be greater than the equilibrium price.
It is the least amount that is permissible under law to exchange products and services, labor, or financial capital.
The minimum wage, which is founded on the normative idea that someone performing a full-time job should be able to afford a basic level of living, is maybe the best-known example of a price floor.
In order to prevent a commodity's market price from falling too low and endangering the producers' ability to make a living, governments typically set a price floor.
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