price support

American  

noun

1. the maintenance of the price of a commodity, product, etc., especially by means of a public subsidy or government purchase of surpluses.

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price support British  

noun

1. government maintenance of specified price levels at a minimum above market equilibrium by subsidy or by purchase of the market surplus at the guaranteed levels

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Etymology

Origin of price support

First recorded in 1945–50

Example Sentences

Graham Kerr said he anticipates the government-led stockpile—announced earlier this month and called Project Vault—will prioritize metals that have opaque markets and need price support to underpin new projects.

From The Wall Street Journal

“Quickly depleting gas inventories are leading to price support as inventories cannot go too low,” the analysts say.

From The Wall Street Journal

Yet Henderson cautioned the broad use of price supports could have unintended negative consequences.

From The Wall Street Journal

To protect millions of livelihoods, the government shields key crops like wheat, rice and dairy with import duties and price support.

From BBC

A backdrop of tight supplies in the U.S. provided further price support, with storage at Cushing, Oklahoma, the delivery point for U.S. crude futures, already at their lowest since July 2022.

From Reuters

Related Words

• subsidy
• tax benefit