revenue, business, growth @ Pixabay

A binding price floor (BPL) is an artificial minimum price set by a government.

This will reduce the total revenue of a firm, which is what we want.

Once you set a BPL, it becomes illegal to sell your product for less than that minimum price.

A BPL will cause firms to charge more for their products .

This might result in them having fewer customers with higher average prices per customer!a

A binding price floor will reduce a firm’s total revenue, which is what we wnt.

Once you set a BPL, it becomes illegal to sell your product for less than that minimum price.

bag, money, wealth @ Pixabay

A BPL will cause firms to charge more for their products and this might result in them having fewer customers with higher average prices per customer!

Finally the topic of adding an artificial value restriction (Binding Price Floor) was discussed on our podcast.

The Workplace Chat Podcast Episode #012 – “Do You Have Enough Control Over Your Own Pay?”

In this episode, I spotlighted Rebecca Shaffer (@rebeccashafferr), founder of Wages & Overtime Law Firm and author of How Much Do You Make? 

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