JAMB - Economics (2011 - No. 10)
Minimum price legislation by government will
reduce supply
increase supply
reduce demand and create surplus
increase demand and create scarcity
คำอธิบาย
To prevent prices from falling further, the government may adopt “minimum price legislation” to protect the interests of farmers or producers or suppliers. The immediate effect of this price ceiling is the emergence of excess demand or persistent shortage of the commodity.