Answer :

(a) Perfect Competiton

In perfect competition, the products are standardized as they are either identical or homogenous. the price of products is also the same in the entire market.

(b) the Price floor is a price that is controlled by the government. It assigns the minimum price at which goods and services are to be sold by the companies.

a. Its aim is to increase companies’ interest in manufacturing the product and increase the overall supply in the market place.

b. The price that is generally higher or lower than the equilibrium price is determined as per the demand and the supply.

c. It is imposed when the supply of certain products is low, resulting in an increase in prices.

The implication is that the price floor protects the workers' rights and boosts employment. At times the price floor is set in such a way to encourage farmers to produce certain crops.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses

What is the minimEconomics - Board Papers