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
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
3
Q
A
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
5
Q
A
6
Q
A
