Asked by
Elery Quiroz
on Oct 26, 2024
Verified
When price controls take the form of maximum prices set below the equilibrium price,they are:
A) illegal.
B) equal to the demand price.
C) price floors.
D) price ceilings.
Price Ceilings
Government-imposed limits on how high a price can be charged for a product or service.
Equilibrium Price
The price at which the quantity of a good demanded by consumers matches the quantity supplied by producers, resulting in market stability.
- Apprehend the fundamentals and results of establishing price ceilings and floors in the economic markets for goods and services.
Verified Answer
VT
Learning Objectives
- Apprehend the fundamentals and results of establishing price ceilings and floors in the economic markets for goods and services.