Question

Does a price floor attempt to make a price higher or lower?

Short answer

Price floor attempts to make a price higher.

Step-by-step solution

Step 1. Define price floor.

When the price charged is greater than or less than the equilibrium price set by market forces of demand and supply, it is referred to as a price floor.

Step 2. Does a price floor seek to raise or lower a price?

A price floor is a legal minimum price below which a company will try to raise prices. A good example of price flooring is the minimum wage.