Home › Bihar Board Class 12 (Arts) › Economics › Simple Applications of Tools of Demand and Supply › Minimum price per drink laws for alcohol are an …
Minimum price per drink laws for alcohol are an example of what?
APrice ceiling
BPrice floor
CExcise refund
DImport quota
Answer & Solution
Correct answer: B. Price floor
A legal lowest price per drink stops alcohol from being sold cheaper, so it is a floor.
Related questions
What do eviction controls in rent regulation set standards for?Isabella Weber argues price caps can help combat which problem?Why can a price ceiling sometimes raise prices?How is aggregate consumers' surplus obtained?Who showed consumer surplus can measure social welfare for a single price change?Which good generally gives a high consumer surplus?With linear curves, consumer surplus has which shape?Producer surplus lies below the equilibrium price and above which curve?