JAMB Economics 2008 Question 46

Question 46

International Economic Organisations

The OPEC marketing policy of fixing minimum price allows members to

  1. A.sell above minimum price
  2. B.sell below minimum price
  3. C.determine the price and quantity to sell
  4. D.negotiate price with customers
Show the answer and explanation

Answer: A (sell above minimum price)

Explanation

A minimum price is a floor: members may not sell below it but can sell above it.