Question

Question 4 of 29

The government might enact a price floor in order to accomplish what?
A. Increase demand
B. Prevent a budget deficit
C. Protect producers
D. Reduce the money supply

Answer 1

Option C

Step-by-step explanation:

Price floor determines the extent to which the price of any product or commodity can be reduced from its market equilibrium price. This is a strategy to safeguard the producers from losses.

Hence, option C is correct