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
what is the supply side

Suppose the utility function is given by: u(x,y) = 3x+4y. What kind of goods are X and Y and what is the MRS?

1. Consider a natural monopoly. I. Show graphically and discuss how price and quantity are set by the natural monopolist. II. Define the areas corresponding to the consumers'

Suppose that between January 2011 and January 2012 the total number of people employed and the unemployment rate both fell. Briefly explain how this is possible. [2 marks]

Buckley (2009) writes that the UK was in recession for several short periods during this time, which placed further emphasis on researchingrelationships between the price of oil an

Concept of Preference, Utility Function: Concept of Preference, Utility Function and Indifference Curve  Consumer preference ('R') specified by the above axioms can be represe

Because discretionary Income = the money people have left over once they have paid for all of their basic needs (Food, Clothing, Shelter). You could also call it Disposable Inc


Effective Demand The concept of effective demand is the logical starting point of Keynes Theory of Employment. Effective demand manifests itself in the aggregate expenditure of

Suppose that quantity demand falls by 30% as a result of a 5% increase in price. What would be the price elasticity of demand for this good?