price support

Definition

Minimum price for a product, established by a government and supported by payments to producers in the event that the market price falls below the specified minimum.

Use price support in a sentence

I did not like the price support because it was established by a government and I did not like the government at all.

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The price support disrupted the free market and had devastating effects on the region as there were no buyers at that price.

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The dairy farmer lobbied his member of congress to pass the year's farm bill because it contained a renewal of the price support for milk, which the farmer's business depended on as insurance against a domestic milk glut.

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price stability holding the market