A price support on agricultural products is labeled by economists as a

Question

Quizplus · Accepted Answer

A price support is a type of government intervention in markets where the government sets a minimum price (i.e., a floor price) for a commodity or product. This is done in order to protect farmers from fluctuations in the market and to ensure that they receive a fair price for their products. Therefore, a price support mechanism is effectively a price floor set by the government. The other answer choices - A) price limit, C) price ceiling, and D) just price - are not accurate descriptions of a price support mechanism.

A Price Support on Agricultural Products Is Labeled by Economists