There are different advantages and disadvantages depending on whether you are talking about suppliers, consumers or the governing body.
For the government, the floor price is useful as they can use it to deter people from buying certain goods such as alcohol and tobacco. They can intervene on the market and set a minimum price at which the good must be sold at or above. If they do this then suppliers are forced to increase prices and therefore quantity demanded decreases. (the floor price must be set above the market equilibrium to be effective)
Disadvantages: sometimes an illegal market can develop where the good is sold at the original market price. For example, in the UK it is not uncommon to find small dealers that illegally import large stocks of cigarettes and then sell them for about half the price of cigarettes that can be bought in shops.
Can often make a political party unpopular with large powerful firms and this can affect their future political success (especially in america)
For suppliers, there are not many advantages. They are no longer able to set the price and depending on the elasticity of the good, their revenue will commonly decrease. Also, at this higher price, their will often be a surplus of supply.
For consumers of the good it is all bad. There are no real advantages, however, if for example a floor price is imposed on Cigarettes, then less people will be smoking. Fewer third parties will be affected negatively by second hand smoke and therefore negative externalities will decrease.
what is the advantages and disadvantages of price legistlation
There are quite a few advantages and disadvantages of fuel price hikes. One disadvantage is that less fuel is purchased bringing in less money.
It means your mom can sell herself cheaper to me.
Helps one to become a smarter shopper, by doing accurate price comparison
The advantages of bride price is that it shows appreciation from the groom and may also improve the financial status of the bride's family. The main disadvantages is that if it is not properly handled, it might cause strife between the two families.
what is the advantages and disadvantages of price legistlation
What_are_the_advantages_and_disadvantages_of_price_level_accounting
There are quite a few advantages and disadvantages of fuel price hikes. One disadvantage is that less fuel is purchased bringing in less money.
price mechanism is hte demand and supply of goods and services
It means your mom can sell herself cheaper to me.
Helps one to become a smarter shopper, by doing accurate price comparison
There are many advantages of having bamboo wood floors and there are some disadvantages. There is no actual test proving that bamboo wood floors are better or stronger than wood floors. It really just depends on your personal preference.
lowers the supply of good creates a shortage
The advantages of bride price is that it shows appreciation from the groom and may also improve the financial status of the bride's family. The main disadvantages is that if it is not properly handled, it might cause strife between the two families.
Advantages and Disadvantages of equity
Advantages: competition sells products at the lowest price and the best qaulity good Disadvantages: No government involved means some products could be harmful to people
advantages and disadvantages