Are price floors a useful economic tool?

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Selected thesis

Price floors are a useful economic tool.

Pros

Cons

  • Pro claim 1

    Price floors can stop downward price spirals.

  • Pro claim 2

    Price floors can ensure that some necessary goods and services can be sustainably supplied.

  • Con claim 1

    Price floors can produce high prices that harm consumers.

  • Con claim 2

    Price floors can create harmful supply surpluses.