A price floor is a minimum legal price. If set above the equilibrium price, it is binding and can lead to surpluses.
Which one of the following is an example of a price floor ?
Asked in UPSC CDS 2 2019 · Topic: Agriculture and Allied Sectors (Agricultural Policies and Programs (MSP, Subsidies))
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Answer: A. Minimum Support Price (MSP) for Jowar in India
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