CUET Economics 2025 15 May Shift 1 PYQs

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:

The market determined price of a good is Rs. 40.The government determines the price ceiling on the good as Rs. 25. Calculate the excess demand/excess supply it will cause if the demand and supply functions are Qd= 200 – p and Qs=120+ p respectively.

The q (1 + e_p) < 0, and hence, ΔE (expenditure) has the opposite sign as Δp (price), if ...................