Price floors are often instituted for which of the following purposes?

Question

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Price floors are often instituted to increase the income of sellers by setting a minimum price for a good or service. This means that sellers cannot sell the good or service for less than the price floor, which can increase their profits. Price floors may also lead to surpluses if the minimum price is above the equilibrium price, as there will be more supply than demand at the higher price. Price floors are not typically used to prevent inflation, make goods and services accessible to all income levels, or increase wages of workers.

Price Floors Are Often Instituted for Which of the Following