Choose correct pair.

B-2

The correct answer is option 2: B-2

Option 1: A-1 (Incorrect): Reason: A Price Ceiling (maximum legal price) is set below equilibrium to help consumers. It does not cause an "Increase in Supply"; in fact, it often leads to a decrease in the quantity supplied by producers due to the lower price.

Option 2: B-2 (Correct)- Reason: MSP (Minimum Support Price) is a Price Floor set above the equilibrium price. Because the price is kept artificially high, producers are encouraged to produce more while consumers buy less, leading to Excess Supply (a surplus).

Option 3: C-3 (Incorrect)- Reason: An Increase in Demand is represented by a Rightward Shift of the demand curve. A "Leftwards Shift" (Pair 3) indicates a decrease in demand.

Option 4: D-4 (Incorrect)- Reason: A Price Floor (like MSP) is set above equilibrium. This leads to Excess Supply, not "Excess Demand." Excess demand occurs when prices are too low (Price Ceiling).