The correct answers are as follows:
1. INCREASE.
In order for the farmers to make more profit, the government has to increase the price of wheat in the market and set the price above the current equilibrium price. This will make the farmers to earn more profit from the sales of their products.
2. PRICE FLOOR.
Price floor refers to a government imposed price that is levy on a particular commodity or product. It is the lowest legal amount of money for which that product can be sold, the product can not be sold below that price. The price floor is a tool that the government use to prevent the price of a commodity from been too low and government often use it to protect farmers.
