He or She will be arrested.
If the price ceiling is above equilibrium: no effect. If the price ceiling is below equilibrium: price lowers to the ceiling level and supply falls. There is too much demand for the current level of supply. A black market forms to capture unmet demand at high prices.
Quantity of demand increases and supplies decreases.
The market price is below the equilibrium price.
above equilibrium
Price Floor.
If the price ceiling is above equilibrium: no effect. If the price ceiling is below equilibrium: price lowers to the ceiling level and supply falls. There is too much demand for the current level of supply. A black market forms to capture unmet demand at high prices.
Quantity of demand increases and supplies decreases.
The market price is below the equilibrium price.
above equilibrium
Equilibrium price increases
Price Floor.
When the market price is lower than the equilibrium price the price of the product will continue to rise. The price will rise until it equal the equilibrium price.
When the market price is lower than the equilibrium price the price of the product will continue to rise. The price will rise until it equal the equilibrium price.
equilibrium price in economics happens when demand for and supply of the products equals
When the overall price level falls, the equilibrium price will usually fall, too.
price rises and quantity increases
below equilibrium price