An effective price ﬂoor on wheat will

Name: An effective price ﬂoor on wheat will
Brand: Quizplus
Rating: 4.7 (57 reviews)

Question

Quizplus · Accepted Answer

An effective price floor on wheat sets a minimum price that buyers must pay for wheat. This would likely result in a surplus of wheat because the higher price would incentivize farmers to produce more wheat than consumers demand, leading to excess supply. This excess supply may lead to storage costs, lower prices in international markets, or even government subsidies to reduce the surplus.

An Effective Price ﬂOor on Wheat Will