1.4.1 Minimum Prices (Edexcel A-Level Economics Teaching PowerPoint)

This teaching powerpoint covers minimum prices as a form of government intervention.

Minimum prices, also known as price floors, are a type of government intervention in the market that sets a minimum price for a good or service. The purpose of a minimum price is usually to protect the incomes of producers. For example, the government might set a minimum price for agricultural products like wheat or corn in order to ensure that farmers can make a living. Minimum prices are a common tool in agricultural policy, but they can also be used in other industries. While minimum prices can be effective at supporting the incomes of producers, they can also lead to surpluses and inefficiency.