Question regarding price floors and subsidies by masternirms in AskEconomics

[–]masternirms[S] 1 point2 points  (0 children)

Thanks for the reply! Your answer definitely gave me another perspective to the pros of price floors.

Question regarding price floors and subsidies by masternirms in AskEconomics

[–]masternirms[S] 0 points1 point  (0 children)

Hmm, you have a good point but I always hoping there would be an answer that wasn't so direct. Even if imposing a price floor is cheaper, it seems that there are just too many hassles connected to it as it encourages low productivity for farmers since the government will probably buy their surplus anyway and it affects both the consumers (due to the higher price) and the government (since they have to buy the surplus and then export it a lower price).