Minimum price legislation, also known as price floors, is a form of government intervention that establishes a legally mandated minimum price for a particular good or service. The purpose is to ensure that producers receive a certain level of income or to protect certain industries. The effects are:
a. Excess supply over demandb. Inflationary result from price increasec. A waste of perishable products occurd. Unemployment will result from excess supply of laboure. Inefficiency in the use of production resources