Asked by
Caitlin Riordan
on Oct 26, 2024
Verified
A price ceiling will not have an immediate effect if:
A) it is set above the equilibrium price.
B) the equilibrium price is above the price ceiling.
C) it is set below the equilibrium price.
D) it creates a shortage.
Equilibrium Price
The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.
Price Ceiling
A legal maximum price that can be charged for a good or service, beyond which it cannot be sold.
- Differentiate between enforceable and non-enforceable price regulations and their impact on market results.
Verified Answer
HG
Learning Objectives
- Differentiate between enforceable and non-enforceable price regulations and their impact on market results.