Determination of demand and supply

Reference no: EM1366465

Early this year, thousands of Americans flocked to Apple's outlets to buy iPad 2 sold by the iconic brand. Long queues snaked outside many of the Apple's outlets dotted over the states.

According to news reports from CNN, due to the limited stock available, some people tried to resell their iPad 2 immediately after purchased from Apple via online websites for sale at higher prices.

Is the reselling of iPad 2 at higher prices a price ceiling or a price floor? Support your answers with suitable diagrams.

Reference no: EM1366465

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