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Simple English definitions for legal terms
floor price
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A quick definition of floor price:
Term: FLOOR PRICE
Definition: A floor price is the lowest possible price that can be charged for a product or service. It is like a safety net that ensures that the price of a product or service does not fall below a certain level. Think of it like a minimum price that must be paid for something. For example, if a store sets a floor price of $10 for a shirt, they will not sell it for any less than $10. This helps to protect the store from losing money and ensures that the product is valued appropriately.
A more thorough explanation:
Definition: A floor price is the minimum price that can be charged for a product or service. It is the lowest price that a seller is willing to accept for their product or service.
Example: A company sets a floor price of $10 for their product. This means that they will not sell their product for any less than $10, even if the market price drops below that amount.
Explanation: The example illustrates how a floor price works. The company has set a minimum price that they are willing to accept for their product. This ensures that they do not sell their product at a loss and helps them maintain a certain level of profitability.