Price Floors, yo

   I agree to the idea of price floors in our economy because it ensures the yearly profit for certain businesses. For example, farmers who grow wheat, corn and soybeans are guaranteed a profit for their farm because of the economy's ability to increase motivation in supply. With the government's control on how low crops can be charged, the price floor becomes greater than the equilibrium price. However, this decreases demand; therefore, this results in a surplus amount of goods. On the other hand, within a few short years, this change in the market economy will eventually balance out, and demand will have to fluctuate to the price crops are set. Due to an inelastic demand for wheat, corn and soybeans, consumer's will have to fluctuate to the increase in price, in order to remain healthy.