BPP kit page 11 Q 4.3 A legal minum price is set below the equilibrium price what will be the impact? A excess of demand over supply B.excess of supply over demand. C.nothing. BPP answer is C -nothing Price is set Below equilibrium so as the poor consumers can afford making demand exceeds supply leading to shortage of good thats how I understood but bbp is stating different ansnwer help sir
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confused help sir
@fatez said: BPP kit page 11 Q 4.3 A legal minum price is set below the equilibrium price what will be the impact? A excess of demand over supply B.excess of supply over demand. C.nothing. BPP answer is C -nothing but the way i understood is that Price is set Below equilibrium so as the poor consumers can afford making demand exceeds supply leading to shortage of good
11y ago#2You are confusing legal minimum and legal maximum.
If equilibrium price is 20, demand =supply. If legal minimum is 15, the price of 20 is still available for equilibrium
Thank you sir for the explanation
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