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WAEC Economics 2022 Objective — Question 16

Question 16 of 50 from the West African Examinations Council (WAEC) Economics 2022 Objective paper, with the correct answer and a full explanation.

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A minimum price legislation is also called

  • A. a price ceiling
  • B. price floorCorrect
  • C. price control
  • D. price mechanism

Explanation

A minimum price (legislated to be above equilibrium) is also known as a price floor, since it sets a floor below which the price cannot fall.

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