Tuesday, October 30, 2012

Price Floors

Much like price ceilings, I also am inclining to the view that price floors are also not successful for government to implement. Again, I feel like it is outside the region of government control and thus not an acceptable option even if it was successful. Additionally, the price floors-even if created-would not succeed in way they are intended too. By creating a price which suppliers cannot sell their product for less, the equilibrium price is not met and there is a surplus of the supply, which is not good for people trying to sell their goods, causing further harm to the economy, thus defeating the purpose of the price floor.

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