Question

Governments often set price floors in an effort to protect:

A producers from high market prices

B producers from low market prices

C consumers from low market prices

D consumers from high market prices

Answer 1

Answer:

B) Producers from low market prices

Explanation:

Price floors are usually used in order to ensure that the market price of a commodity does not fall below a level that would threaten the financial existence of producers of the commodity.

Answer 2

Answer:

B) Producers from low market prices