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above equilibrium
The minimum price legislation is the commodity sold at any price price below the one stated example government or authorities. The intention is to protect the supplier at times when the market id at equilibrium and price tends to fall (due surplus). To be effective, a minimum price must be set above prevailing current market equilibrium price. Also there should be no cheating.
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
Equilibrium is when supply and demand is balanced or equivalent, whereas disequilibrium doesn't attain equilibrium which is either above or below equilibrium.
If the prices are set below the level of equilibrium, the quantity supplied will be less than the quantity demanded. Introduction of minimum prices will lead to hoarding of goods, thus social welfare falls.
above equilibrium
The minimum price legislation is the commodity sold at any price price below the one stated example government or authorities. The intention is to protect the supplier at times when the market id at equilibrium and price tends to fall (due surplus). To be effective, a minimum price must be set above prevailing current market equilibrium price. Also there should be no cheating.
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
Equilibrium is when supply and demand is balanced or equivalent, whereas disequilibrium doesn't attain equilibrium which is either above or below equilibrium.
If the prices are set below the level of equilibrium, the quantity supplied will be less than the quantity demanded. Introduction of minimum prices will lead to hoarding of goods, thus social welfare falls.
A law setting the minimum wage below the equilibrium point might have an unintended effect that could lead to unemployment. It also prevents poor families being able to better their conditions and thus increases poverty.
equilibrium amplitude
equilibrium amplitude
Price ceiling are maximum price for a particular good or service, usually by the government. If price ceiling is placed below an equilibrium price (set by the supply and demand of the market) there is a shortage since suppliers are not as willing to supply the goods while the consumers are willing to purchase more of the product. However, if the price ceiling is placed above an equilibrium price, it is considered non-binding and has no practical effect. Price floor works opposite of price ceiling and is a minimum price for a particular good or service. If price floor is placed above an equilibrium price there is a surplus. However, if the price ceiling is placed below an equilibrium price, it is considered non-binding and has no practical effect.
0.16
The minimum height for enlistment in the Army is five feet...or 60" for Males and four eight... or 58" for Females
The market price is below the equilibrium price.