Asked by Schyler Molloy on Jun 18, 2024
Verified
What are price supports? When did the government begin using price supports?
Price Supports
Government interventions to maintain the market price of a commodity or product at a certain level by buying excess supply or instituting price floors.
Government
The organization or system through which a community, state, or nation is governed, often involving regulations and public services.
- Review the influence of governmental policies on agricultural economic practices, highlighting the role of price supports and subsidies.
Verified Answer
BW
Brian WeekmanJun 23, 2024
Final Answer :
The term price supports refers to price floors applied to farm commodities. It is the minimum price that the government allows farmers to receive for farm commodities like wheat or corn. The government began using them in the 1930s until major farm program reforms in the mid-1990s.
Learning Objectives
- Review the influence of governmental policies on agricultural economic practices, highlighting the role of price supports and subsidies.
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