What do price floors protect?

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1284869

2026-02-17 23:35

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Price floors protect sellers by ensuring they receive a minimum price for their goods or services, which can help maintain their income levels and sustain their operations. This is often implemented in industries like agriculture to prevent prices from falling too low, thereby supporting farmers. However, if set above the equilibrium price, price floors can lead to surpluses, as the quantity supplied may exceed the quantity demanded.

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