A government-imposed price floor in the tobacco market will raise the value of land used to grow tobacco.

Question

Quizplus · Accepted Answer

A government-imposed price floor in the tobacco market, if set above the equilibrium price, would increase the price at which tobacco can be sold. This would likely increase the revenue of tobacco farmers, making land used for growing tobacco more valuable due to its higher profitability.

A Government-Imposed Price Floor in the Tobacco Market Will Raise