Asked by
Lucas Hechler
on Oct 13, 2024
Verified
In the graph above,a government imposed price of $10 represents a price _____ and there is a _____.
A) floor,surplus
B) floor,shortage
C) ceiling,surplus
D) ceiling,shortage
Price Floor
A government- or authority-imposed minimum price set above the equilibrium price, preventing sellers from trading at lower prices.
Surplus
An excess of something, often used in economic contexts to describe a situation in which supply exceeds demand.
Shortage
A situation where the demand for a product exceeds its supply at the current price, leading to a scarcity of the product in the market.
- Master the fundamental ideas behind price ceilings and price floors in market economics.
- Elucidate the conditions conducive to the appearance of surpluses and shortages in the market.
Verified Answer
DN
Learning Objectives
- Master the fundamental ideas behind price ceilings and price floors in market economics.
- Elucidate the conditions conducive to the appearance of surpluses and shortages in the market.