price support

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price support

The government provides price support for wheat farmers.

Definition

Noun: A government subsidy or market intervention used to maintain the price of a commodity or product at a certain level, typically above the market equilibrium, to support producers' incomes.

Usage

This term is used in economics, agriculture, and public policy to describe a specific type of government action. It functions as a compound noun.

Examples: * The farm bill included price support for wheat and corn. * Removing the price support caused the market price to fall sharply. * The policy of price support is often criticized for creating surplus goods.

Advanced Usage
  • "to provide price support": This verb phrase describes the government's action of implementing this policy.
    • The government decided to provide price support for dairy farmers.
  • "a system of price supports": The plural form is often used to refer to the overall policy framework or multiple support mechanisms.
    • The agricultural sector relies on a system of price supports.
Variants and Related Words
  • Subsidy (n): A sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low. (A broader term; price support is a specific type of subsidy aimed at maintaining a price .)
  • Price floor (n): A government- or group-imposed limit on how low a price can be charged for a product. (This is the regulatory mechanism often used to enforce price support.)
  • Market intervention (n): Government action to influence market prices or quantities.
Synonyms
  • Agricultural subsidy
  • Market price support
  • Producer support
Antonyms
  • Price ceiling (a maximum price set by the government)
  • Market liberalization
  • Deregulation
Related Phrases
  • To support prices: The verbal phrase from which the noun is derived.
    • The government buys surplus grain to support prices.
  • To benefit from price support: Describes the recipients of the policy.
    • Local farmers benefit from price support.
price support

The government provides price support for wheat farmers.

Noun
  1. a government subsidy used to maintain prices at a certain level