The difference between Price Floor and Subsidy is explained below.
Explanation:
When a minimum price for a product or service is being fixed, it is called as the price floor. This price floor is set by the government in order to make sure that everyone is getting at least the minimum amount of money. The example of price floor is the wages of labor. Governments decide the minimum level of wage that a labor should get. This is the price flooring.
Whereas subsidy is the amount of money which a government grants to an under performing industry to give it a boost. For example a government may grant money to a transport industry, in order to make them help the people reaching their destinations at a lower fare.
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