> If you are guaranteed by law to buy it for less than you can sell it, you can price it mighty low to attract customers and still make money.

That's not a price floor, it would be a price ceiling on the second level supplier, and they could just choose not to sell. There's no way this scenario could happen except for subsidies and mandated production like the Defense Production Act.

> It's funny, your comment reads like a business has some kind of right to make a profit, rather than letting the free market figure out if it should exist or not.

You seem very confused.