Market consequences of a price floor

Related BrainMass Solutions

• The Minimum Wage Impact Assessed

  In economic terms, what are the market consequences of a price floor? A price floor is set by the government to protect the producer of the good to which the price floor has been attached.

• Price Controls and Equilibrium

  The market consequences of a price floor are that equilibrium is not reached in the market for labor. As a result the price of the labor remains fixed because of the price floor at a higher level than equilibrium price.

• market consequences of a price floor

  relating to market consequences of a price floor

• Economics

  //After discussing the price floor and the example of price floor, now we will discuss the elements, which assist to prevent price from falling. We will also discuss the consequences of price floor on the market.

• Business cycles, supply and demand, price of labor, minimum wage law

  295054 Business cycles, supply and demand, price of labor, minimum wage law 1. In economic terms, what are the market consequences of a price floor? Discuss the economic implications of implementing a legal minimum wage. 2.

• Market Efficiency and Government Intervention

  The unintended consequences are that there is higher level of unemployment. A price floor above the equilibrium wage means minimum wage laws cause unemployment.

• Explain difference between a price floor and a price ceiling

  For example, if folks are buying nuts at $5 a pound and you put in a floor of $1 a pound, nothing will change. The market price is not interrupted.

• What are price controls?

  reason, a price ceiling above the eq. price does not change anything (since market price is low, so setting a max. doesn't matter) - If a price floor is higher than the eq. price, then price will be forced to increase to the level of the price floor

• Price floors and market equilibrium

  453339 Price floors and market equilibrium Starting from the original supply and demand positions, show what happens if the government puts a price floor above the market (equilibrium) price to help producers of root beer.