Asked in Business & FinanceAgricultureEconomicsPersuasive Speech
What are the advantages of a price ceiling?
January 04, 2013 11:48PM
I am not sure if there are any advantages because the end result is a deadweight.
On the contrary, there are many advantages to price ceilings. One is that it lowers the cost for the consumers and therefore encorages consumption. Therefore the demand for that good or service will increase. This is a type of government intervention used to correct market faliure. However a price ceiling must always be put below the equilibrium point or it will have no effect. If the government uses innacurate information, then this can lead to government faliure.