- In economics, a price support is a subsidy, a production quota, or a price control1. It is intended to keep the market price of a good higher than the competitive equilibrium level1. In the case of a price control, a price support is the minimum legal price a seller may charge, typically placed above equilibrium1. In finance, support refers to a price level where a downtrend can be expected to pause due to a concentration of demand or buying interest2.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.
In economics, a price support may be either a subsidy, a production quota, or a price control, each with the intended effect of keeping the market price of a good higher than the competitive equilibrium level. In the case of a price control, a price support is the minimum legal price a seller may charge, typically placed above equilibrium.
en.wikipedia.org/wiki/Price_supportSupport is a price level where a downtrend can be expected to pause due to a concentration of demand or buying interest. As the price of assets or securities drops, demand for the shares increases, thus forming the support line.
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WebFeb 24, 2019 · Price supports are policies that cause a market to maintain a price above the free-market equilibrium by buying output from …
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WebA price support is a program that combines a minimum price floor and government purchase of any excess production. Learn how a price support works, how it differs from a price floor, and how it creates deadweight …
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WebPrice supports are intended to help producers. The outcome of the welfare analysis demonstrates that price supports can increase producer surplus, but in many cases at a large cost to the rest of society. Figure 2.2.1 …
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