what are the merits of price floor
suhany1411:
Price floor are used to give producers a higher income. They are used to increase the income of farmers producing goods.it is obvious in this situation that by incresaseing the price above equilibrum, governemt is assisting the producers and not the consumers.A higher price is going to mean a higher income for the producer.
Answers
Answered by
1
Explanation:
Price floors prevent a price from falling below a certain level. When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.
Answered by
1
Explanation:
Price floors prevent a price from falling below a certain level. When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.
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