Microeconomics

Part II. Short Answers (Each Question = 15 Marks) Q-1 (a). State whether each of the following is an example of a price ceiling or a price floor. Example Price ceiling or Price floor a) Minimum-wage legislation. b) Government price supports for agricultural commodities c) Rent controls d) Government controls on the price of gasoline to make it more affordable for consumers e) A freeze on credit card interest rates Q-1 (b). State two characteristics of perfect competition and monopolistic competition which are similar. (1) (2) State how perfect competition is different from monopolistic competition