Which one of the following is an example of a price ceiling?<\/p>\n
[amp_mcq option1=”Fares charged by Airlines in India” option2=”Price printed on biscuit packets” option3=”Minimum support price for cane growers” option4=”Minimum wages fixed by state Governments” correct=”option2″]<\/p>\n
* Option A) Fares charged by Airlines in India: Airline fares are generally determined by market dynamics, although they can be subject to regulatory oversight regarding maximum and minimum limits or fare bands in certain situations (like during emergencies or for specific routes). However, they are not a standard, universal example of a price ceiling like an MRP.
\n* Option B) Price printed on biscuit packets: This typically refers to the Maximum Retail Price (MRP). MRP is a type of price ceiling set by the manufacturer, indicating the maximum price that can be charged to the consumer. It serves as a legal upper limit.
\n* Option C) Minimum support price for cane growers: Minimum Support Price (MSP) is an example of a price floor, which is a minimum price set by the government, usually above the equilibrium price, to protect producers (farmers in this case).
\n* Option D) Minimum wages fixed by state Governments: Minimum wage is another example of a price floor, applied to the price of labour.<\/p>\n