![]() Often policy failed to work as people are ready to pay higher price and that gives rise to black marketing. Price ceiling policy is taken to control price rise of essentials due to high demand and shortage of supply.Governments usually set price ceilings to protect consumers from rapid price increases that could make essential goods prohibitively expensive. A price ceiling is another type of price control, only this time it keeps a price from climbing above a certain level - the "ceiling".The binding price floor is not below equilibrium as you would assume it is above. For a binding price floor or ceiling, picture them as the opposite, picture a house with a floor and a ceiling, now the lay the supply and demand graph over it. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |