Price floor means the price that government sets to be the lowest price in order to make people who are poor or can not well afford some products to buy what they want. Any price beyond it is considered to be illegal. Price floor has two kinds. One is binding while another one is non-binding. For the non-binding price floor, it doesnt have any effect at all. Free market would adjust to its equilibrium. For the price floor that is binding, the consumers would be better off as they can buy things at a lower price, thus the demand would increase. The producers will be worse off as they would receive less than they usually do,thus the supply will decrease.气As a result, the demand exceeds supply. Therefore, a shortage appears.
汗了..第一次回复用了那么长的英文,还是中文好打又方便的说.希望可以帮助楼主理解.