A minimum price legislation is also called - JAMB Economics 2022 Question
A minimum price legislation is also called
A
price ceiling
B
price floor
C
price control
D
price mechanism
correct option: b
Option B is the correct answer.
A minimum price legislation is also commonly referred to as a "price floor" is a government-imposed price floor that sets a legal minimum price for a particular good or service. It is designed to protect producers or sellers from being paid prices that are too low, but can result in an excess supply of the good and a potential surplus.
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