Farmers can benefit from government intervention if:

Question

Quizplus · Accepted Answer

Price floors for agricultural goods set above the equilibrium price allow farmers to receive a higher price for their goods than they would in a free market. This provides them with a guaranteed income and incentive to continue farming. However, price ceilings or price floors set below the equilibrium price can lead to surpluses or shortages, respectively, and harm both producers and consumers. Price floors for fertilizers or other inputs do not directly benefit farmers, and may actually increase their costs of production.

Farmers Can Benefit from Government Intervention If