Price Min Flashcards

(6 cards)

1
Q

What is price minimum

A

It is where the free market iequilibrium deems the good price to be too low leading goods to not be sold below the price given

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2
Q

What is minimum price

A

It is where a good or service cannot be sold at a price under this. Where the feee market equilibrium deems it to be too low

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3
Q
A
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4
Q

What are reason why min price is introduced

A

To protect earnings of producers
To create a surplus of goods in periods of future shortages
To guarantee a level of earning

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5
Q
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6
Q
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