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The government of country X found that farmers earned little profit by selling wheat to wholesalers at the market price of $5.50 per bushel. To help farmers, the government decides to the price of wheat. This adjustment is an example of government intervention through a .

User Sorina
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1 Answer

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I believe the answer is: Price floor
Price floor refers to a form of Government regulation that put a limit on how cheap a certain product can be sold in the market.
Imposing price floor will guarantee a certain level of margin for the sellers and will increase their average profit.
User Animesh Pandey
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