Study the diagram below, and answer the following questions.
Which of the following lines represents the price floor?
[1 mark]
A
AC
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
BK
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
CM
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
FH
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is A AC Price floors and price ceilings are government-imposed minimums and maximums on the prices of certain goods or services. Price floor is always above the equilibrium point.