Question

______ refers to the minimum price, fixed by the government, which is above the equilibrium price.

Options

• Price floor

• Minimum support price

• Both (a) and (b)

• None of these

Answer 1

Both (a) and (b)

Explanation:

The minimum support price, also known as the price floor, is set by the government in the interest of producers. It refers to the lowest price set by the government in order to prevent farmers from being exploited, and it is set higher than the equilibrium price.