Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:

Minimum support price of wheat is an example of ___________.

Options:

Market price

Price ceiling

Equilibrium price

Price floor

Correct Answer:

Price floor

Explanation:

The correct answer is option 4: Price floor

The Minimum Support Price (MSP) of wheat is a price floor, meaning it is a government-set minimum price that ensures farmers receive a guaranteed price for their produce, even if the market price falls below it.