Question

How does price support affect demand? Explain in one sentence

Answer 1

Price support reduces the demand for a product by artificially inflating its price, making it less attractive to consumers.

Answer 2

Surplus

Answer 3

Price support can create a surplus of a product by preventing prices from falling to the market-clearing level, leading to an excess supply that is not fully demanded by consumers.

Answer 4

So what's the answer

Answer 5

I apologize for the confusion in the previous response. Price support policies can increase demand for a product by reducing its price to make it more affordable and attractive to consumers. This can lead to an increase in consumer purchases and higher demand overall.