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When governments apply price floors, whom do they aim to help?

a) Buyers
b) Sellers
c) Both buyers and sellers
d) Neither buyers nor sellers

1 Answer

7 votes

Final answer:

Price floors are implemented by governments to help sellers and protect their income.

Step-by-step explanation:

A price floor is a government-imposed minimum price that is set above the equilibrium price in a market. The primary aim of price floors is to help sellers, specifically producers and suppliers, by ensuring that they receive a higher price for their goods or services. By setting a price floor, the government intends to support producers and protect their income.

User Brian Postow
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