"Price floor is a system to protect the interest of producer". Defend

1.	"Price floor is a system to protect the interest of producer". Defend or refute.
Answer» Solution :The government imposes lower limit on the price that may be CHARGED for a particular good or service is called price floor. When equilibrium price determined by market forces of demand and supply is considered to be UNREMUNERATIVE for the PRODUCER, the government intervenes to protect the interest of producers.

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