WAEC - Economics (2015 - No. 16)

All the following are methods of determing prices except?
maximum pricing
rationing
minimum pricing
auctioning

Explanation

A maximum price occurs when a government sets a legal limit on the price of a good or service – with the aim of reducing prices below the market equilibrium price.

Minimum Prices. It is known as minimum price or pricefloor when the government sets a minimum legal limit of aprice of a particular good or service. 

In economics, rationing refers to an artificial control of the supply and demand of commodities. 

Comments (0)

Advertisement