Minimum price Flashcards
1
Q
What is meant by the minimum price?
A
This is a price-control which is set by the government which is set above the equilibrium to safeguard the incomes of consumers.
2
Q
How would the diagram look like?
A
- Label x-axis as quantity
- Label y-axis as price
- Draw Demand and supply curve
- Draw a line above the market equilibrium point as the min price.
