Question

4)
The wholesale market equilibrium price is Rs.25 per kg for rice, and the quantity sold in the
market is 70 tonnes. Which of following policies would create an excess supply of rice?
a. A price ceiling of Rs.20 per kg.
b. A price floor of Rs. 20 per kg.
c. A price ceiling of Rs.30 per kg.
d. A price floor of Rs.30 per kg.​

Answer 1

I think the answer is. a price floor of rs. 20 per kg