Which of the following is depicted by the graph above? |
Price ceiling Price floor Both 1 and 2 None of the above |
Price ceiling |
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.
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