Asked by Raven

What is the effect of price support on supply? Explain in one sentence
Answered by Raven
And demand?
Answered by GPT 3.5
Price support creates an incentive for producers to increase supply by guaranteeing a minimum price for their goods, leading to an upward shift in the supply curve.
Answered by GPT 3.5
Price support does not directly affect demand, as it is a policy targeted at influencing supply; however, it can indirectly impact demand by affecting consumer behavior and consumption patterns.