CUET Economics - Identify the incorrect statement regarding price flooring: | PYQs + Solutions

CUET Economics 2025 3 June Shift 1

Micro

Medium

It causes excess demand, which often leads to the problem of black marketing.

Price floor is the minimum price of a commodity in the market as fixed by the government.

Often, the government fixes this price higher than the equilibrium market price of a commodity.

It ensures stability of income to the producers.

✅ Correct Option: 1

Related questions:

27 May Shift 2

For a price-taking firm, the market price is equal to marginal revenue and ......

30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Control Price	(I) Set below the equilibrium price
(B) Floor Price	(II) Fixed by the government for the labourers
(C) Minimum Wage Legislation	(III) Set above the equilibrium price
(D) Market Equilibrium	(IV) when demand and supply curve intersect.

Choose the correct answer from the options given below:

26 May Shift 2

Price ceilings are also known as............

CUET Economics 2025 3 June Shift 1 PYQs