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What causes a shortage of goods price ceiling or price floor Which causes a surplus?
if, at a current price there is a shortage of a good
A situation that occurs when a producer cannot offer a particular good or service at the current price?
shortage
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
When maximum price below the equilibrium price causes excess?
a price ceiling set below the market equilibrium creates an excess demand, leading to a shortage of the good. Think about it like this, if a good is a lot cheaper than it should be, more people would want to buy it, but less people would want to make it, since its so cheap.
How is current demand related to the future price of a good?
If the price is expected to drop, current demand will fall.
What causes a shortage of a good - a price ceiling or a price floor?
if, at a current price there is a shortage of a good
What causes a shortage of goods price ceiling or price floor Which causes a surplus?
if, at a current price there is a shortage of a good
A situation that occurs when a producer cannot offer a particular good or service at the current price?
shortage
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
What are some advantages and disadvantages of price ceiling?
lowers the supply of good creates a shortage
When maximum price below the equilibrium price causes excess?
a price ceiling set below the market equilibrium creates an excess demand, leading to a shortage of the good. Think about it like this, if a good is a lot cheaper than it should be, more people would want to buy it, but less people would want to make it, since its so cheap.
How is current demand related to the future price of a good?
If the price is expected to drop, current demand will fall.
How is the current demand for a good related to is future price?
If the price is expected to drop, current demand will fall.
Which causes a shortage of a good - a price ceiling or a price floor?
The establishment of a price ceiling on any type of good available for sale could lead to sever shortages. A price ceiling is commonly associated with price controls which can be imposed by government authorities, ostensibly to prevent price gouging when a particular good is in short supply. The imposition of price controls can lead to a shortage of goods if manufacturers cannot profitably produce the goods below the sales price cap imposed by price controls. In the short run a company may chose to continue producing goods that cannot be sold above the cost of production but in the long run a company selling goods at a loss will wind up bankrupt, producing nothing and the goods that they previously produced will completely disappear from the marketplace.
When does excess demand occur in the equilibrium price?
Excess demand occurs when demand outweighs supply. This means there is a shortage of a good.
How do new cars affect the price of gas?
If the reason for the price of gas increasing is shortage of supply, then making new cars with smaller engines might be a good idea
How is the current demand for a good related to its future prices?
If the price is expected to drop, current demand will fall.
