Governments sometimes set prices to protect producers and consumers from dramatic price swings.
command economy
Laissez-faire
B. set prices for goods and services~apexx~ab
More crops for soldiers, increased funding for spending. Coffman?
In some cases the price for an object as achieved by supply and demand does not cover the average cost of an item. If this is the case, there is an incentive not to produce to save money. Therefore, the government will enact a price floor so that the industry will find it profitable to produce and thus do so.
set prices for goods and services
set prices for goods and services
command economy
it allowed the government to set prices over some private businesses (apex)
Laissez-faire
It doesn't decide which or how many goods are produced, or it doesn't set prices or tell people where to work. The government doesn't play much of a role at all.
B. set prices for goods and services~apexx~ab
it allowed the government to set prices over some private businesses
A market where there is no choice, maybe, like a command economy, where goods and prices are set by the government.
More crops for soldiers, increased funding for spending. Coffman?
Hoover believed that the federal government could not give direct aid to individuals. He believed in free market capitalism and did not think the constitution gave the federal government the power to set prices.
In some cases the price for an object as achieved by supply and demand does not cover the average cost of an item. If this is the case, there is an incentive not to produce to save money. Therefore, the government will enact a price floor so that the industry will find it profitable to produce and thus do so.