Question 10EconomicsWAEC & JAMB
Government fixing of prices below the equilibrium point is aimed at protecting the
A
sellers
B
industries
C
distributors
D
consumers
Step-by-Step Explanation
Ans: D___ Consumers.
Government fixing prices below the equilibrium price is known as Maximum price control. This implies that sellers cannot sell their products above the amount set by the government. so they will definately sell below the price set by government. This is aimed at protecting Consumers.
Ref: Fundamentals of Economics for Senior Secondary Schools by R.A.I Anyanwuocha. 2010 Edition. Pg 224.