A minimum price legislation is also called
ECONOMICS
WAEC 2022
A minimum price legislation is also called
- A. price ceiling
- B. price mechanism
- C. price control
- D. price floor
Correct Answer: D. price floor
Explanation
Minimum price is often called price floor and it is fixed by the government to protect the producer or seller. Minimum price is set above the equilibrium price and when this occur, there will be excess supply over demand i.e surplus.
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