Breaking News

There is a following effect of existence of policy of maximum price and minimum by the government:

  1. Increasing demand
  2. Increasing supply
  3. Decreasing demand
  4. Rare of goods in market 5. Decreasing supply
    Unballancing of price in market effect of policy of minimum price is….

A. 1 and 2
B. 1 and 3
C. 2 dan 3
D. 3 dan 4
E. 4 dan 5

The right answer is C. 2 dan 3

The minimum price policy (floor price) is the lowest price policy set by the government for certain goods and services with the aim of protecting producers from experiencing losses.
Increasing supply and decreasing demand are the effects of implementation of minimum price policy.