Eliminating all farm price floors would

Question

Quizplus · Accepted Answer

Eliminating price floors would likely lead to lower market prices for farm goods because price floors are minimum prices set by the government above the equilibrium price, ensuring farmers can sell their products at a higher price than the market would naturally allow. Removing these would likely result in prices dropping to the equilibrium level, which could be lower than the price floor, leading to decreased revenue for farmers. This decrease in revenue could, in turn, lower the value of farm property as the profitability of farming decreases.

Eliminating All Farm Price Floors Would