Asked by Elizabeth Ridgeway on Jun 17, 2024
Verified
A)Is $28 a price ceiling or price floor in the above graph?
B)Is there a shortage or a surplus?
C)How much is this shortage or surplus?
Price Ceiling
A price ceiling is a legal maximum price set by the government for certain goods or services to prevent prices from becoming prohibitively high.
Price Floor
A government-imposed minimum price charged on a product, below which that particular product cannot be supplied to the market.
Shortage
A scenario in which the market's need for a service or product surpasses its availability.
- Comprehend and identify the distinctions between price ceilings and price floors.
- Compute the size of scarcity or excessiveness in outlined market circumstances.
Verified Answer
HH
Learning Objectives
- Comprehend and identify the distinctions between price ceilings and price floors.
- Compute the size of scarcity or excessiveness in outlined market circumstances.