Price Floors should also not be implemented because it won't have any benefits for our economy. If the price floor is below then nothing will change because the market price is already set above, therefore it is ineffective but when the price floor is placed above the market economy price then suppliers can now work with a higher price and possibly gain more profits. But when this is altered, consumers will likely drop or even drop out of the market because the price is now higher than what was offered before. Also, when the price rises, suppliers will also have to increase the amount of supply which is unreasonable when there is less demand for the product, overall creating a surplus which is not needed.
What is the point of having the price floor be below the market price?
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