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Economics4

n many farmers going broke, because they cant afford to stay in business. By using floor prices, the farmers will have to charge an amount by which they can profit and not have to worry that their competitor has a lower price. As a result of using floor prices, surpluses are sure to happen, and when this does happen, the government buys from the farmer to end the surpluses. Needless to say, this makes the farmer very happy. It is very important that the government use floor and ceiling prices. If it werent for imposed prices, we could end up paying $10 for some water or have no corn to eat with our dinner....

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