price floor???? diagram also....
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Answered by
6
A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product. A price floor must be higher than the equilibrium price in order to be effective.
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Answered by
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Heya.....
Thanxxxx for your question first....
Here is your answer friend......
@@ Price floor....
--->>> This is the minimum limit set by govt in case of excess supply...By this farmer can sell their output to govt and fixed minimum rates for market security...
--->>> It is done to secure the market stability and investments in farming....
--->>> Govt fixes the price floor above the equilibrium prices...
@@ It's implications are....
** Govt purchase the excess output of govt and store it for future needs in buffer stocks...
** Farmers fells safety in market....
For dia see the above attachment.... pls...
Thanxxxx for your question first....
Here is your answer friend......
@@ Price floor....
--->>> This is the minimum limit set by govt in case of excess supply...By this farmer can sell their output to govt and fixed minimum rates for market security...
--->>> It is done to secure the market stability and investments in farming....
--->>> Govt fixes the price floor above the equilibrium prices...
@@ It's implications are....
** Govt purchase the excess output of govt and store it for future needs in buffer stocks...
** Farmers fells safety in market....
For dia see the above attachment.... pls...
Attachments:
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