Asked by
Citlally Mendoza
on Nov 30, 2024
Verified
If price was set by the government at $11,there would be a price __________,that would cause a ___________ of ______ units.
A) floor,surplus,8
B) floor,surplus,10
C) floor,shortage,8
D) ceiling,shortage,12
E) ceiling,surplus,14
Price Floor
A government or group-imposed price control or limit on how low a price can be charged for a product, aiming to protect producers.
Price Ceiling
A legally established maximum price that can be charged for a good or service, often set below the equilibrium price to keep essential goods affordable.
Surplus
An excess of something, especially a quantity of a commodity or financial instrument that exceeds what is needed or used.
- Comprehend the notions of shortfall and excess in supply and their effects on market movements.
- Distinguish between the implications of setting prices above or below equilibrium.
Verified Answer
GA
Learning Objectives
- Comprehend the notions of shortfall and excess in supply and their effects on market movements.
- Distinguish between the implications of setting prices above or below equilibrium.