In economics, a price support may be either a direct payment, a production quota, or a price floor, each with the intended effect of keeping the market price of a good higher than the competitive equilibrium level, usually by a government. In the case of a price control, a price support refers to the minimum legal price a seller may charge, typically placed above equilibrium.
In economics, a price support may be either a direct payment, a production quota, or a price floor, each with the intended effect of keeping the market price of a good higher than the competitive equilibrium level, usually by a government. In the case of a price control, a price support refers to the minimum legal price a seller may charge, typically placed above equilibrium.
Source: Wikipedia "Price support" · CC BY-SA 4.0
Share this article: X · Bluesky