Asked by
Fechin Attuah
on Oct 09, 2024
Verified
A ceiling price in a competitive market will result in persistent surpluses of a product.
Ceiling Price
A ceiling price is a government-imposed limit on how high a price of a good or service can be charged in the market, typically set below the equilibrium price to make goods more affordable.
Competitive Market
A market situation where numerous sellers and buyers exist, and where each has a negligible impact on the market price.
- Comprehend the principles of price ceilings and price floors, along with their impacts on market dynamics.
Verified Answer
KN
Learning Objectives
- Comprehend the principles of price ceilings and price floors, along with their impacts on market dynamics.