CUET Economics - Identify the correct statement regarding government intervention in case of price control from the following. | PYQs + Solutions

CUET Economics 2026 19th May Shift 2

Micro

Medium

Fall in price below a certain level is not desirable for some goods & services, hence the government sets floor price.

Price ceiling accompanied by rationing of the goods may result in the reduction of black market.

To prevent price fall because of excess supply, government needs to sell the surplus at the predetermined price.

Price ceiling is generally imposed on luxury items.

✅ Correct Option: 1

CUET Economics 2026 19th May Shift 2 PYQs