Question

When governments apply price floors, whom do they aim to help?

a) Buyers
b) Sellers
c) Both buyers and sellers
d) Neither buyers nor sellers

Answer 1

Price floors are implemented by governments to help sellers and protect their income.

Step-by-step explanation:

A price floor is a government-imposed minimum price that is set above the equilibrium price in a market. The primary aim of price floors is to help sellers, specifically producers and suppliers, by ensuring that they receive a higher price for their goods or services. By setting a price floor, the government intends to support producers and protect their income.