refers to the minimum price fixed by the government which is above the equilibrium price ...........

Introductory Macro Economics Government Budget and Economy

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............refers to the minimum price, fixed by the government, which is above the equilibrium price.

Price floor

Minimum support price

Both (a) and (b)

None of these

Explanation:

Option (3) is correct.

Explanation: Minimum support price or price floor is fixed by the government in the interest of producers and it refers to the minimum price which is decided by the government so
that producers are not exploited and it is fixed above the equilibrium price.

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