Price Floor is the price fixed by the government, which is:

CA Foundation · Business Economics · MTP · April 2025
Price Floor is the price fixed by the government, which is:
(A) A. Equal to Equilibrium Price
(B) B. Below the Equilibrium Price
(C) C. Above the Equilibrium Price
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Above the Equilibrium Price

Topics: Price Determination in Different Markets

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