Minimum price of a commodity fixed by government to save the interest of producer of raw materials is called ?
Correct answer: A. Floor price
- A. Floor price
- B. Fixed price
- C. Bid Price
- D. Basic Price
Explanation
A floor price is a government-set minimum price, often used to protect producers from very low market prices. It is effective only when fixed above the equilibrium price and enforced.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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