Explanation:

• Correct option: (c) Explanation: Option (c) is correct Supplementary notes: Price Floor For certain goods and services, fall in price below a particular level is not desirable and hence the government sets fl oors or minimum prices for these goods and services.
• The government imposed lower limit on the price that may be charged for a particular good or service is called price floor.
• Most well known examples of imposition of price fl oor are agricultural price support programmes and the minimum wage legislation.
• Through an agricultural price support programme, the government imposes a lower limit on the purchase price for some of the agricultural goods and the fl oor is normally set at a level higher than the market-determined price for these goods.
• Similarly, through the minimum wage legislation, the government ensures that the wage rate of the labourers does not fall below a particular level and here again the minimum wage rate is set above the equilibrium wage rate.