Suppose the government decides to create a price support (floor)on the price of corn. A binding price support/floor will tend to lower the price of corn for poorer people.

Question

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A binding price support/floor means that the government is setting a minimum price for corn, which provides financial support to farmers. This support would tend to increase the price of corn, not decrease it, since the government is ensuring that farmers receive a certain amount of money for their crops. This would tend to benefit wealthier farmers, rather than poorer people who may rely on lower prices for affordable food. A binding price support creates a minimum price for corn, which means that farmers will receive more for their corn. This is likely to increase the price of corn for consumers, including poorer people, rather than lower it.

Suppose the Government Decides to Create a Price Support (Floor)on