What is a Mixed Economy?
Imagine if a country was like a big game.
In some games, people can do whatever they want. That’s like a free market—where businesses decide prices.
In others, there are lots of rules, and the government controls everything.
But in a mixed economy, it’s a bit of both! People can run businesses and make money, but the government steps in to help when things are unfair.
What Is a Minimum Price?
A minimum price means: “No one is allowed to sell this thing for less than this amount.”
It’s a rule made by the government to make sure people (like farmers or workers) get enough money for what they sell or the work they do.
Think of it like this: Would it be fair if you sold your lemonade for 10 cents but it cost you 50 cents to make it? Of course not! That’s why the government helps by saying, “You must sell it for at least 60 cents.”
Where Do We See Minimum Prices?
Here are some real-life examples:
1. For Farmers
Farmers grow food like rice and wheat. But sometimes, the prices drop and they don’t make enough money. So the government says: “We’ll set a Minimum Support Price. You must get at least this much.”
This helps farmers take care of their families.
2. For Workers
People who work jobs need to be paid fairly. The government sets a Minimum Wage, which is the lowest amount a worker can be paid.
This stops companies from paying workers too little.
Why Do We Need Minimum Prices?
Here’s why they’re helpful:
They help farmers and workers earn enough.
They protect people who might be struggling.
They make sure we always have enough food and supplies.
It’s like having training wheels on a bike — they keep you steady when things get rough! 🚲
Are There Any Problems?
Yes, sometimes.
If prices are too high, people might not buy things.
Stores could have too much stuff left over.
The government might need to buy and store the extra things.
But most of the time, it’s better than letting people get paid unfairly or lose money.
In Short:
A minimum price is like a rule to keep things fair. In a mixed economy, we mix freedom (people running businesses) with help (government stepping in).
It’s all about making sure no one is left behind.
