Thursday, September 5, 2019

SUPPLY & DEMAND

Price Ceiling:keeps prices from getting too high. ex: rent control
Consequences of price ceiling
1. lower prices for some consumers
2shortage
3 long lines for buyers
4 illegal sales above equilibrium price
Price floor- legal minimum price meant to help sellers4 consequences1 higher product price2 a surplus3 higher taxes or higher government debt if the government buys a surplus4 waste



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1 comment:

  1. Stephanie.MSeptember 6, 2019 at 5:34 AM

    can you explain to me a bit more of the consequences of the price ceiling and price flooring?

    ReplyDelete

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