A price that the government guarantees farmers will receive for a particular crop is:
A)a price ceiling.
B)a price floor (price support).
C)a deficiency price.
D)an export price (export subsidy).

Question

Quizplus · Accepted Answer

A price floor, also known as a price support, is a minimum price set by the government for a particular commodity, such as a crop. The intention behind a price floor is to ensure that farmers receive a certain level of income and can continue to produce the crop.

A Price That the Government Guarantees Farmers Will Receive for a Particular