Categories: blog

A price floor that sets the price of a good above market equilibrium will cause?

This article will help answer that question.

The price floor is a policy that sets the price of an item above market equilibrium.

Which can cause unintended consequences.

In this article, we’ll explore what happens when there’s a price floor.

Why it might not be the best idea to enact one in your business?

courses, shares, forex @ Pixabay

The unintended consequence of a price floor creates two groups:

Consumers will either overpay if they buy from the producer with the artificially high prices OR they’ll go elsewhere to find what they need at lower costs (i.e., black markets).

With these consequences, you might want to think twice before instituting such a scheme so your business doesn’t end up on its head! 

Radhe

Well, since we already know each other I think it would be great to get acquainted with you!

Recent Posts

What are some essential practices to consider boosting app security?

The need for security is crucial for any industry out there. With the rapid increase…

1 month ago

The Fastest Way to Try Out Charging Money for Android Information Usage Fees

After all, turning even just your Android phone data usage costs into cold hard cash…

1 month ago

How to Cash Check Credit Cards Correctly: How to Absolutely Cash Out a Korean Credit Card

Credit cards are a major part of our lives when it comes to managing personal…

2 months ago

The Ultimate Guide to Low-Fee Credit Card Cashing in 2024 with Micropayment Partner

So far in this new decade,소액결제 현금화 credit card cashing is becoming an almost essential…

2 months ago

Realize the Power of Your Credit Card: Verificated Ticket Where You Can Easily Cash Out

Introduction Credit cards have transformed from basic payment instruments to one of the most important…

2 months ago

How to Get The Most Out of King Credit Web Cash Loans

By making use of online financial platforms, you can improve your financial management and savings…

3 months ago

This website uses cookies.