What type of market intervention is signified by the government setting a minimum price for agricultural products?

Setting a minimum price for agricultural products is correctly identified as a price floor. A price floor is a regulatory measure imposed by the government, which establishes the lowest allowable price that can be charged for a particular good or service, in this case, agricultural products.

The intention behind implementing a price floor is typically to ensure that producers receive a minimum income, thus protecting them from the fluctuations in market prices that could lead to unsustainably low prices. It helps stabilize the agricultural economy and ensures that farmers can cover their costs and continue operations. By setting a minimum price, it also prevents the market price from dropping too low, which can be detrimental to those in the agricultural sector.

In contrast, other options, such as price ceilings or tax incentives, do not relate to setting a minimum price. A price ceiling places a maximum allowable price, which can lead to shortages if set below equilibrium. Tax incentives aim to encourage certain behaviors or investments through reductions in taxes owed but do not establish a price point in the same manner. Subsidies involve government financial aid to support or promote specific sectors without directly setting price limits. Hence, the concept of a price floor aligns directly with the idea of establishing a minimum price in the market.