2 ms·

They mandate the price will never go so low they will loose money. Imagined you could buy gas wholesale for a dollar a gallon and the price floor retail was tw

• astrange 3y ago
  They're losing money if nobody buys from them, because they have overhead to stay open.
  • grecy 3y ago
    If you are guaranteed by law to buy it for less than you can sell it, you can price it mighty low to attract customers and still make money. It's funny, your comment reads like a business has some kind of right to make a profit, rather than letting the free market figure out if it should exist or not.
    • astrange 3y ago
      > If you are guaranteed by law to buy it for less than you can sell it, you can price it mighty low to attract customers and still make money. That's not a price floor, it would be a price ceiling on the second level supplier, and they could just choose not to sell. There's no way this scenario could happen except for subsidies and mandated production like the Defense Production Act. > It's funny, your comment reads like a business has some kind of right to make a profit, rather than letting the free market figure out if it should exist or not. You seem very confused.