Implementing A Price Floor Can Cause

Implementing a price floor can cause.

Implementing a price floor can cause.

Implementing a price floor can cause. However price floor has some adverse effects on the market. If price floor is less than market equilibrium price then it has no impact on the economy. O poverty o a shortage.

But if price floor is set above market equilibrium price immediate supply surplus can be observed. A price floor is an established lower boundary on the price of a commodity in the market. A surplus scarcity poverty a shortage. When society or the government feels that the price of a commodity is too low policymakers impose a price floor establishing a minimum price above the market.

Price floor is enforced with an only intention of assisting producers.