if the market price imposed by suppliers are too high for consumers then the price ceilings are imposed....if the market price is too low for the producers then price floors is imposed.
Price ceiling is government rules or laws setting price floors or ceilings that forbid the adjustment of price to clear markets. Price ceilings make it illegal for sellers to charge more than a specific maximum price. ceilings may be introduced when a shortage of a commodity threatens to raise its price a lot.
a shortage
no
whats the answer?
if the market price imposed by suppliers are too high for consumers then the price ceilings are imposed....if the market price is too low for the producers then price floors is imposed.
Price ceiling is government rules or laws setting price floors or ceilings that forbid the adjustment of price to clear markets. Price ceilings make it illegal for sellers to charge more than a specific maximum price. ceilings may be introduced when a shortage of a commodity threatens to raise its price a lot.
establishment of price ceilings
a shortage
whats the answer?
no
When economist says price floors means above equilibrium and leads to undermanned surplus. When they say price ceilings it means price below equilibrium which leads to unsupplied shortage.
Ration
price floors because, when binding, price floors increase price above the equilibrium and may increase producer surplus.
efficiency
to limit the impact of equilibrium pricing
One disadvantage of having price controls is the fact that it can possibly limit income. Price ceilings mean that the price can't go above the price ceiling, which could be detrimental to profits.