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seraphim [82]
1 year ago
5

With alternative policies like income subsidies and directed construction subsidies readily available, why do governments enact

price floors and price ceilings?
Social Studies
1 answer:
nikdorinn [45]1 year ago
3 0

With alternative policies like income subsidies and directed construction subsidies readily available,  governments enact price floors and price ceilings because they wanted to provide public goods that are not provided  in an efficient way by competitive market.

Price floor and price ceilings are tools for price control sometimes People frequently fail to take into consideration the unforeseen but predictable trade-offs in discussions of public policy involving pricing controls. That's why government use this tool for poor people so anyone can easily pay for goods .

Another reason is that the government may consider legislation establishing price floors and ceilings as having no cost, but providing incentives to buyers or sellers necessitates tax revenue and expenditure of funds.

to learn more about price floor here

brainly.com/question/13335147

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