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Demystifying economy | what floor:
Posted at 6:00 a.m.
What is the floor price from an economic point of view? Similarly, He has currently disappeared for petrol. Therefore, It exists for beer. Moreover, For what ? Nevertheless, Competition can manage these floor prices well! Meanwhile, Are there other floor prices? Nevertheless, Thank you for explaining to us.
Lavergne stone
In Quebec, you set floor prices for consumption milk and beer. Furthermore, Currently. demystifying economy | what floor Moreover, grocery stores and convenience stores of a large part of Quebec cannot sell the two -liter cardboard 2 %, for example, at a price less than $ 4.17. Nevertheless, And a set of six beer cans of 355 ml to 5 % alcohol should be sold at least $ 8.57.
The floor price on gasoline, set up in 1996, was abolished last spring by the government of François Legault. For example, It was aimed at the time from preventing major players in the industry from selling petrol at a too low price. Furthermore, which could have eliminated competitors. Nevertheless, By deciding to put an end to pricing. Moreover, Quebec says it wants to “protect the interests of consumers, in all regions of Quebec, by promoting a more competitive market for petrol prices”.
In addition. Similarly, the regulations that affect demystifying economy | what floor milk and beer are kept in place to preserve the survival of the smallest shops. Moreover, The idea is to prevent supermarkets from providing them with fierce competition by selling beer. Meanwhile, milk at derisory prices, sometimes at a loss, in order to attract consumers to the store (call price technique, or loss leader pricing in English). A battle that the small convenience store or the local grocer can hardly win.
On the other hand. price fixings in the milk and beer sector also pursue objectives which differ from one product to another, underline the experts interviewed by The press.
Demystifying economy | what floor
The case of milk
“The purpose of fixing the price on milk is to ensure accessibility to the product. because it is considered that it is an essential product,” sums up Pierre-Alexandre demystifying economy | what floor Blouin, president and chief executive officer of the association of food retailers in Quebec.
If it was not regulated. large areas could sell the product at a price so low that small convenience stores could not match it. Result: some could simply stop selling it and consumers would no longer have access to it, according to Mr. Blouin.
You should know that in Quebec, there is also a ceiling price for milk. Thus. in the large region of Montreal, the format of 4 liters of 2 % milk cannot be sold at retail at more than $ 8.65. The price of retail milk has been regulated since 1935 in the province. It is the agricultural. food management of Quebec (RMAAQ) which determines how much the consumer will pay his box or his bag of milk. Prices are revised each year. demystifying economy | what floor Important detail: only the price of basic milk is regulated. That of value -added milks (biological. lactose -free, microfiltrated, sold in a plastic container or in a cardboard with a plastic cap) is not.
Beer
In beer fridges, it is not the argument of accessibility to the product that comes into play. On the contrary. “The goal is not to have a product that would be too accessible [en raison de son bas prix]explains. Mr. Blouin. The consumer must be protected against himself and prevent the product from being used as loss leader [produit d’appel]. »
“The minimum price of four -level beer according to the degree of alcohol was set up in 1994. ” wrote in an email sent to The press Me Joyce Tremblay, spokesperson for the Régie des alcohol, races and games (RACJ), demystifying economy | what floor in charge in Quebec to set the price of beer.
“The establishment of this minimum beer price structure followed the arrival of foreign beers in the grocery network. We feared that they could be sold there at too low prices encouraging abusive consumption, especially in young adults. He has [donc] been decided to establish a minimum price of beer which is increased by the annual application of the consumer price index. “she explains.
Consumers can consult the different milk and beer price tables on RMAAQ and RACJ sites. In the case of milk. prices vary according to the format, the content of fat and the region where it is sold. That of beer is determined according to the format and the alcohol content.
But in the end, is the price fixing advantageous for the consumer? demystifying economy | what floor Does she still have relevance? The experts interviewed emit nuanced opinions on this subject.
“It is certain that from the point of view of economic mechanics. a floor price has the repercussions a likely price increase for consumers since it aims to prevent frantic competition on the product in question,” explains Patrick Mundler, full professor and director of the Department of Agri -Food Economy of Laval University.
On the other hand, the floor price “guarantees a certain price stability”. “He protects the consumer from volatility,” he adds.
“It is difficult to have a decided opinion. ” adds Maurice Doyon, also a professor in the Department of Agri -Food economics at Laval University. Our first reflex would be to say: if we remove the floor price, we will let the competition play. We may be more demystifying economy | what floor likely that the product is used as a call product, so that it is cheaper. But somewhere. if the grocer succeeds in attracting me in his store, he will try to recover elsewhere by selling me other more expensive products. »»
“On the other hand. if the number of retailers decreases [parce qu’ils ne peuvent pas égaler les prix]there will be less competition in detail, so it is not necessarily positive, he continues. Is relevance there? The question arises. »»
Demystifying economy | what floor
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