price support: meaning, definition, pronunciation and examples
LowTechnical/Formal
Quick answer
What does “price support” mean?
A government policy or subsidy aimed at keeping the market price of a commodity or product from falling below a certain level.
Audio
Pronunciation
Definition
Meaning and Definition
A government policy or subsidy aimed at keeping the market price of a commodity or product from falling below a certain level.
More broadly, any intervention or mechanism, not necessarily governmental, designed to maintain or increase the price of an item, asset, or service.
Dialectal Variation
British vs American Usage
Differences
No significant difference in meaning. The spelling of related terms (e.g., 'government programme' vs. 'government program') may differ. The concept is equally common in both policy lexicons.
Connotations
In both varieties, it often connotes protectionism, agricultural policy, and economic interventionism.
Frequency
Slightly more frequent in US media due to extensive discussion of farm bills and agricultural subsidies. In the UK/EU, 'Common Agricultural Policy (CAP)' is a frequent collocation.
Grammar
How to Use “price support” in a Sentence
[Government] provides price support for [commodity].There are calls to end price support for [industry].The [policy] acts as a form of price support.Vocabulary
Collocations
Examples
Examples of “price support” in a Sentence
verb
British English
- The scheme was designed to price-support the dairy industry.
- They debated whether to price-support key staples.
American English
- The bill aims to price-support renewable energy credits.
- Historically, the US has price-supported major crops.
adjective
British English
- The price-support mechanism is under review.
- They discussed price-support policies.
American English
- The price-support program is costly.
- He is a critic of price-support measures.
Usage
Meaning in Context
Business
Discussed in commodity trading and agribusiness reports; e.g., 'Price support schemes affect global sugar prices.'
Academic
A key concept in agricultural economics and political economy papers; e.g., 'The study evaluates the welfare effects of long-term price support.'
Everyday
Rare in casual conversation. May appear in news discussions about farming or food costs; e.g., 'The new farm bill includes price support for corn.'
Technical
Precise term in economics and policy documents, detailing mechanisms like deficiency payments or buffer stocks.
Vocabulary
Synonyms of “price support”
Strong
Neutral
Vocabulary
Antonyms of “price support”
Watch out
Common Mistakes When Using “price support”
- Using 'price support' as a verb (e.g., 'The government price supports corn'). Correct: 'The government provides price support for corn.' or 'The government price-supports corn' (rare and hyphenated as verb).
- Confusing 'price support' (active intervention) with 'price ceiling' (maximum price).
FAQ
Frequently Asked Questions
They are closely related. A price support is a type of subsidy aimed specifically at maintaining a price level. Not all subsidies are price supports (e.g., a direct cash grant).
Primarily producers (like farmers) benefit from higher, stable prices. Consumers often pay higher prices as a result, and taxpayers fund the government's support costs.
Yes, but it is rare and typically hyphenated (e.g., 'to price-support an industry'). It is more common to use it as a noun (e.g., 'provide price support').
The conceptual opposite is a free market with no intervention. A specific policy opposite could be 'removing subsidies' or 'deregulation'. A 'price ceiling' is a different type of intervention (setting a maximum price).
A government policy or subsidy aimed at keeping the market price of a commodity or product from falling below a certain level.
Price support is usually technical/formal in register.
Price support: in British English it is pronounced /praɪs səˈpɔːt/, and in American English it is pronounced /praɪs səˈpɔːrt/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “[Not applicable for this technical term]”
Learning
Memory Aids
Mnemonic
Imagine a government agent using a giant mechanical SUPPORT beam to hold up the PRICE tag in a supermarket, preventing it from falling.
Conceptual Metaphor
MARKET PRICES ARE STRUCTURES (that can be propped up/supported). GOVERNMENT IS A SUPPORTIVE PARENT (providing for struggling industries).
Practice
Quiz
What is the primary purpose of a 'price support' policy?