Asked by
Cameron Bible
on Oct 13, 2024
Verified
When a price ceiling which had been set below equilibrium price is removed,what happens next?
A) Quantity supplied rises.
B) Quantity demanded falls.
C) Price rises.
D) All of the choices.
Price Ceiling
A government-imposed limit on how high a price can be charged on a product or service.
Equilibrium Price
A price point where the supply of goods meets the demand for those goods in the market.
Quantity Supplied
The total amount of a good or service that producers are willing and able to sell at a specific price over a certain period of time.
- Develop an appreciation for the mechanisms of price ceilings and price floors in market economics.
- Explain the effects of governmental measures, like price limitations, on the balance of market forces.
Verified Answer
RL
Learning Objectives
- Develop an appreciation for the mechanisms of price ceilings and price floors in market economics.
- Explain the effects of governmental measures, like price limitations, on the balance of market forces.