0
If the price floor is above market equilibrium then companies are forced to sell at that price. This means the market's quantity supplied and quantity demanded will not equal each other, resulting in a surplus.
If the price floor is lower than market equilibrium then the government imposed regulation is non-binding, resulting in no change to the market.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
The supply and demand model predicts that a price floor will result?
The supply and demand model that a price floor will result in is based on consumer want and need. A lower demand will result in lower market values for products.
How is a price floor different from a price ceiling?
Price floor is a minimum and price ceiling is a maximum.
When is a price floor not binding?
the quantity of the good demanded with the price floor is less than the quantity demanded of the good without the price floor
What is floor price in share market?
A floor price is a group-imposed price limit on how low a price can be charged for a product.
Give an example of a price ceiling and an example of a price floor?
Price cealing: rent control Price floor: minimun wage
What does the supply and demand model predict a price floor will result in?
supply and demand model predicts that a price floor will result in
The supply and demand model predicts that a price floor will result?
The supply and demand model that a price floor will result in is based on consumer want and need. A lower demand will result in lower market values for products.
How is a price floor different from a price ceiling?
Price floor is a minimum and price ceiling is a maximum.
How is floor price different from a price ceiling?
Price floor is a minimum and price ceiling is a maximum.
When is a price floor not binding?
the quantity of the good demanded with the price floor is less than the quantity demanded of the good without the price floor
What is floor price in share market?
A floor price is a group-imposed price limit on how low a price can be charged for a product.
Give an example of a price ceiling and an example of a price floor?
Price cealing: rent control Price floor: minimun wage
Give an example of a price floor and a price ceiling and the purpose of the controls?
an example of a price floor is the minimum wage
How is price floor different from price ceiling?
A price floor is the minimum price set by the government where as a price ceiling is the maximum price sellers can charge for a good or service.
What is causes a surplus price ceiling or price floor?
A price floor can cause a surplus while a price ceiling can cause a shortage but not always.
What is a price floor?
A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, good, commodity, or service.
Use price floor in a sentence?
Producers set the price floor when sailing a new good.
