From the graph below P2 in price control situation is referred
ECONOMICS
JAMB 2016
From the graph below P2 in price control situation is referred
- A. Minimum price
- B. Shut-down price
- C. Maximum price
- D. Mark-up price
Correct Answer: A. Minimum price
Explanation
Price control is a limit set by a government on the price that can be charged by companies for particular products or services. From the diagram above, P2 represents the minimum price at which firms can sell their products. The minimum price is the lowest amount companies are allowed by law to charge for their products. It is usually above the equilibrium price.
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