Economy if price ceiling or price floor were removed, Macroeconomics

What is the impact on the economy if price ceiling or price floor were removed?

Ans) Price ceiling is government system or laws setting price floors or ceilings that forbid the adjustment of price to clear markets. Price ceilings make it illegal for sellers to charge more than a exact maximum price. Ceilings may be introduced when a shortage of a commodity threatens to increase its price a lot.

 

Posted Date: 4/1/2013 4:00:39 AM | Location : United States







Related Discussions:- Economy if price ceiling or price floor were removed, Assignment Help, Ask Question on Economy if price ceiling or price floor were removed, Get Answer, Expert's Help, Economy if price ceiling or price floor were removed Discussions

Write discussion on Economy if price ceiling or price floor were removed
Your posts are moderated
Related Questions
Suppose that Michael and Dwight each have a $60 weekly entertainment budget. They pay the same prices for two goods, "an evening reading books" (an ERB) and "an evening of beer and


If taxes and government expenditures were constant and did not vary with income, then: A. passive deficits would increase. B. structural deficits would increase. C. passive deficit

The following is the information from the national income accounts for a hypothetical country: GDP

the central economic problem facing the group of survivors

Q. What is Keynesian model? Keynesian model is slightly more complicated than the classic model and it is developed in four stages by analysing four separate models. Every mode

How do the five competitive forces in Porter's model affect the profitability of the overall industry? For example, in what way might weak forces increase industry profits, and in

constructing a opportunity set and budget line for $15 lottery ticket and intending on buying a candy bar for $0.75 and peanut bag for $1.50

Derivation of Indifference Curve: Consider any commodity bundle denoted by point A in the above figure which consist x 0 1  and x 0 2 amount of good I and good II respectiv

This release also states that the Federal Reserve is in the process of purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt. Additio