Draw distinction between floor pricing and price ceiling.

1.	Draw distinction between floor pricing and price ceiling.
Answer» Floor price means minimum price. Floor price is fixed to protect producers like farmers from price crashes. It ensures a remunerative price to producers. In India, floor prices are fixed for a variety of agricultural commodities like paddy, wheat, coconut, rubber etc. On the other hand, price ceiling mean maximum price. It is the maximum price fixed by the government. The aim of price ceiling is to protect consumers. Government fixes price ceiling for essential products and medicines to protect the interests of the consumers.

Answer»

Floor price means minimum price. Floor price is fixed to protect producers like farmers from price crashes. It ensures a remunerative price to producers. In India, floor prices are fixed for a variety of agricultural commodities like paddy, wheat, coconut, rubber etc.

On the other hand, price ceiling mean maximum price. It is the maximum price fixed by the government. The aim of price ceiling is to protect consumers. Government fixes price ceiling for essential products and medicines to protect the interests of the consumers.

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