Quantcast

Got Homework?

Connect with other students for help. It's a free community.

  • across
    MIT Grad Student
    Online now
  • laura*
    Helped 1,000 students
    Online now
  • Hero
    College Math Guru
    Online now

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

guatejm Group Title

Do producers favor price supports or price ceilings and why? Do producers favor price supports or price ceilings and why? @Economics - Finan…

  • 2 years ago
  • 2 years ago

  • This Question is Closed
  1. WWENDT Group Title
    Best Response
    You've already chosen the best response.
    Medals 1

    Producers wil obvious favor Price Supports from the govt as that means that the price will not go below the support and this guarantees the producer at least a mimimum profit. They would NOT like a price ceiling as that would prevent them from raising the price even if their costs went up. wmw

    • 2 years ago
  2. sheg Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    I agree with WWENDT sir. And as we all know in the current scenario everyone just wants to make profit with less risk. So, the producers want to have a support price from the government i.e., the minimum price they will be able to recieve in extreme case. But if their will be an upper ceiling that will bind them to sell below or at that level that is they cannot sell above that ceiling so it will reduce there profit upto a certain level. Hence, producers want a support price but not an upper ceiling.

    • 2 years ago
    • Attachments:

See more questions >>>

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.