CUET Economics - Which of the following is incorrect with reference to the imposition of a price floor for a good? | PYQs + Solutions

CUET Economics 2025 16 May Shift 1

Micro

Medium

The government imposes a lower limit on the purchase price for some of the goods.

The floor is normally set at a level lower than the market-determined price for these goods.

It leads to an excess supply in the market.

It is also known as minimum support price(MSP).

✅ Correct Option: 2

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CUET Economics 2025 16 May Shift 1 PYQs

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