Asked by Megan Lawless on Jul 15, 2024

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Verified

Price floors are primarily intended to help​

A) ​No one
B) Consumers
C) Producers
D) ​Government

Price Floors

Price controls that outlaw trade at prices below the floor.

Intended

Designed or planned to serve a particular purpose.

  • Identify the function of government intervention within marketplace dynamics.
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Verified Answer

DP
Daniel PlattJul 19, 2024
Final Answer :
C
Explanation :
Price floors are a form of government intervention in markets and are intended to help producers by setting a minimum price for their products. This allows producers to earn a higher income and may encourage them to produce more. Additionally, price floors can provide stability in markets where prices may fluctuate rapidly. However, they can also lead to an oversupply of products and a surplus, which can be costly for the government to manage.