Arrange the following statement of government intervention in the form of price control.
(A) The government sets floors or minimum prices for these goods and services.
(B) A fall in price below a particular level is not desirable.
(C) The price charged for a particular good or service is called the price floor.
(D) The government imposed a lower limit on the price.
Choose the correct answer from the options given below:
Arrange the following statement of government intervention in the form of price control.
(A) The government sets floors or minimum prices for these goods and services.
(B) A fall in price below a particular level is not desirable.
(C) The price charged for a particular good or service is called the price floor.
(D) The government imposed a lower limit on the price.
Choose the correct answer from the options given below:
Solution
Option 3: (B), (A), (D), (C) -> The logical arrangement starts with (B) explaining why price control is needed - a fall in price below a certain level is undesirable. This establishes the rationale. Next, (A) introduces the government's response by setting floors or minimum prices. Then (D) elaborates on this action by stating the government imposes a lower limit on price. Finally, (C) provides the technical definition, naming this mechanism as a 'price floor'. This sequence follows a natural progression: problem identification → government action → implementation method → terminology definition. -> correct
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