Concept of price ceiling and price floor on a market

Reference no: EM1374982

Show the effects of a price ceiling and a price floor on a market. As for what happens with valuing is different than equilibrium, a rate Floor is Minimum wage where wage rate is bigger than the rate at equilibrium. While a price Ceiling is like rent controls in large cities to keep rents lower so it is more affordable which causes rents to be lower than equilibrium. Minimum wage is one example and New York's Rent Control is another one. Discuss which of these two examples is either a floor; or a ceiling and explain why? Videos may help in the Announcements.

Reference no: EM1374982

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