GCE Economics 2022 Objective — Question 15
Question 15 of 50 from the General Certificate of Education (GCE) Economics 2022 Objective paper, with the correct answer and a full explanation.
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If the government imposes a minimum price on a commodity
- A. market surplus occursCorrect
- B. the market will be cleared in the short-run
- C. excess demand occurs
- D. government regulation is no longer needed
Explanation
A minimum price (price floor) is fixed above the equilibrium price to protect producers, and this causes excess supply/market surplus.
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