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The agricultural price support program is an example of _________.
- Aa price ceiling
- Ba price floor
- Cequilibrium pricing
- DNo option is correct.
Answer not set
Discussion 1
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CCommunity
A price ceiling
It is a situation when the price charged is more than or less than the equilibrium price by market.
A price floor
A price floor is the lowest legal price that can be sold commonly. It is used by the government to prevent prices from being too low.
Equilibrium pricing
It is the market price where the quantity of goods supplies is equal to the number of goods in demand.
So, the agricultural price support program is an example of a price floor.
It is a situation when the price charged is more than or less than the equilibrium price by market.
A price floor
A price floor is the lowest legal price that can be sold commonly. It is used by the government to prevent prices from being too low.
Equilibrium pricing
It is the market price where the quantity of goods supplies is equal to the number of goods in demand.
So, the agricultural price support program is an example of a price floor.