A minimal authorized value established by a governing physique, under which change is prohibited, represents a particular sort of market intervention. For example, laws might dictate the bottom permissible value for a specific agricultural product, corresponding to milk, aiming to help farmers’ incomes.
Such interventions are sometimes applied to safeguard producers from market volatility and guarantee a primary stage of profitability. Traditionally, these measures have been used in periods of financial hardship or overproduction to stabilize particular sectors. The intention is to stop costs from falling to ranges that might trigger important financial misery to these working throughout the focused trade.
