What is the floor price in an auction?

Auction floor price means a price for allowances below which bids at auction would not be accepted.

What is a floor bid in an auction?

Bids from other sources such as in-room, telephone or auction house absentee are indicated as “floor bid” in the bidding console. If the competing bid is from another Bidsquare online bidder you will see that indicated.

What is the basic price floor?

A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, good, commodity, or service. A price floor must be higher than the equilibrium price in order to be effective.

What is the minimum price at an auction called?

reserve price
Common to auctions, a reserve price or a reservation price is the minimum amount that a seller will accept as the winning bid. Alternatively, it is less commonly known as the highest price a buyer is willing to pay for a good or service.

Is it cheaper to buy at auction?

When buying a car at auction, the price can be cheaper than purchasing in a private sale or from a dealership because you efficiently cut out the middleman. This will ensure you avoid making any expensive mistakes by purchasing a vehicle that isn’t worth the money you paid for it.

Who pays the commission in an auction?

At the most basic level auctioneers receive a commission (percentage of the sale price) and/or fee by the seller of the asset or property in question. Agreed upon prior to the auction, these commissions and fees are in the auction contract.

What are some examples of price floors?

Governments use price floors to keep certain prices from going too low. Two common price floors are minimum wage laws and supply management in Canadian agriculture. Other price floors include regulated US airfares prior to 1978 and minimum price per-drink laws for alcohol.

What is the best example of a price floor?

A price floor is the lowest price that one can legally charge for some good or service. Perhaps the best-known example of a price floor is the minimum wage, which is based on the view that someone working full time should be able to afford a basic standard of living.

What are examples of price floors?

An example of a price floor is minimum wage laws, where the government sets out the minimum hourly rate that can be paid for labour. In this case, the wage is the price of labour, and employees are the suppliers of labor and the company is the consumer of employees’ labour.

What’s an example of a price floor?