Question

The wholesale market equilibrium price is Rs.40 per kg for wheat, and the quantity sold in the
market is 50 tonnes. Which of following policies would create a shortage in supply of wheat?
a. A price ceiling of Rs.20 per kg.
b. A price floor of Rs. 30 per kg.
c. A price ceiling of Rs.50 per kg.
d. A price floor of Rs.50 per kg.​

Answer 1

Answer:

I think the answer is b. A price floor of Rs. 30 per kg.