Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:

Which of the following is depicted by the graph above?

Options:

Price ceiling

Price floor

Both 1 and 2

None of the above

Correct Answer:

Price ceiling

Explanation:

The correct answer is Option 1: Price ceiling

Price ceiling is generally imposed on necessary items like wheat, rice, kerosene, sugar and it is fixed below the market-determined price(equilibrium price) since at the market-determined price some section of the population will not be able to afford these goods.