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Minimum price legislation by government will

Minimum price legislation by government will
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Reduce supply
  • B Increase supply
  • C Reduce demand and create surplus
  • D Increase demand and create scarcity
Correct Answer: Option D
Explanation:
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.

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