Monday, October 29, 2012

Price Floor

I agree once again that price floor should be used in the economy just like price ceiling. Some products that a price floor should be put on are tobacco and alcohol. Price floors would rise the price of the product making people desire them less. This could cause a surplus of the supply of the product. The surplus would eventually be compensated for by the producers so they don't keep on losing money on the extra products produced so I believe that the surplus would eventually fix itself.

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