Government can use price floor rather than ceiling. Price floor is also a measure of price control imposed by the government. But this is a control or limit on how low a price can be charged for any commodity. It is the minimum price set by the government on particular goods and services in order to prevent producers from being paid very less price.. Draw a diagram to illustrate this (showing explanation )
Government can use price floor rather than ceiling. Price floor is also a measure of price control imposed by the government. But this is a control or limit on how low a price can be charged for any commodity. It is the minimum price set by the government on particular goods and services in order to prevent producers from being paid very less price.. Draw a diagram to illustrate this (showing explanation )
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Government can use
It is the minimum price set by the government on particular goods and services in order to prevent producers from being paid very less price..
Draw a diagram to illustrate this (showing explanation )
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Step 1
Government imposes price floor usually on agricultural goods so as to protect farmers from low prices and exploitation.
Given below is the graph showing the price floor.
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