The price floor is fixed by the government on which of the following goods?
Answer & explanation
Correct answer: option 3
The correct answer is Option 3: Agricultural
- A price floor is the minimum price set by the government to ensure that producers get a fair income.
- It is mainly used in the agricultural sector to protect farmers from price fluctuations.
- In India, the Minimum Support Price (MSP) is an example of a price floor applied to crops like wheat, rice, and sugarcane.