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Which situation is the MOST LIKELY result of a price ceiling being set the equilibrium price?
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How does price ceilings affect supply and demand?
A price ceiling prevents a price from rising above the ceiling. It represents an upper limit on the price of something. If wheat has a price ceiling of $400 per metric tonne, $400 is the highest amount any what supplier can charge. If the market price for wheat is below the ceiling, say $200 in this example, then the ceiling has no effect on prices; the ceiling is not binding. If the market price is higher than the ceiling, supply and demand cannot reach equilibrium and there is a shortage in the commodity. Artificially low prices result in demand that exceeds supply. The price, however, remains stuck at the ceiling.
A decrease in input costs to firms in a market will result in?
a decrease in equilibrium price and an increase in equilibrium quantity
What is the result of high equilibrium wage?
an extra demand for workers
What is the result of a high equilibrium wage?
an extra demand for workers
How would it be possible to observe a decrease in both the equilibrium price and quantity in the market at the same time?
A fall in demand will result in the decrease of both equilibrium price and quantity. A fall in demand( a leftward shift in the demand curve) will result in the decrease of both equilibrium price and quantity.
What price must a price ceiling be less than for it to result in a shortage?
It must be less than the equilibrium price.
How does price ceilings affect supply and demand?
A price ceiling prevents a price from rising above the ceiling. It represents an upper limit on the price of something. If wheat has a price ceiling of $400 per metric tonne, $400 is the highest amount any what supplier can charge. If the market price for wheat is below the ceiling, say $200 in this example, then the ceiling has no effect on prices; the ceiling is not binding. If the market price is higher than the ceiling, supply and demand cannot reach equilibrium and there is a shortage in the commodity. Artificially low prices result in demand that exceeds supply. The price, however, remains stuck at the ceiling.
A decrease in input costs to firms in a market will result in?
a decrease in equilibrium price and an increase in equilibrium quantity
What cannot be the result of punctuated equilibrium?
extinction and coevolution
What is the result of high equilibrium wage?
an extra demand for workers
What is the result of a high equilibrium wage?
an extra demand for workers
How can a game of tug of war result in equilibrium?
Both sides are pulling the opposite dirrention so acceleration is zero which is equilibrium
How would it be possible to observe a decrease in both the equilibrium price and quantity in the market at the same time?
A fall in demand will result in the decrease of both equilibrium price and quantity. A fall in demand( a leftward shift in the demand curve) will result in the decrease of both equilibrium price and quantity.
What rationing is an attempt to limit shortage that naturally result from what?
Price ceiling
Rationing is an attempt to limit shortages that naturally result what?
Price ceiling
What is a result of osmisis?
Isotnic Even pressure on both sides of the membrane Equilibrium
How the forces in a game of tug of war result in equilibrium?
In the game of tug of war, both sides pull the rope. When the force is equal there is a state of equilibrium.
