Asked by
JULIA WHISMAN
on Nov 30, 2024
Verified
The price of $10 in the graph above represents
A) a price floor.
B) a price ceiling.
C) either a price floor or a price ceiling.
D) neither a price floor nor a price ceiling.
Price Ceiling
A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers.
Price Floor
A government-imposed minimum price charged for a good or service, typically above the equilibrium price, to prevent prices from falling too low.
- Assess the implications of price restriction measures, like price ceilings and floors, on surplus or shortage within the market.
Verified Answer
TP
Learning Objectives
- Assess the implications of price restriction measures, like price ceilings and floors, on surplus or shortage within the market.