What Condition Is Necessary for a Price Floor to Have

question 16

Essay

What condition is necessary for a price floor to have an impact on a market? Describe two effects that a price floor can have on a market.

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Definitions:

Development

The process of growth or progress, often marked by a series of changes or stages, in the context of individuals, societies, or organisms.

Gradual

describes a process happening in small degrees, steps, or stages over a period, rather than suddenly.

Continuous Process

An operation or production system where input materials are continuously fed and processed, resulting in a continuous output.

The Origin of Species

Refers to Charles Darwin's seminal work on evolutionary biology, proposing the theory of natural selection.